Euro Weakens Amid Virus Fears
The euro depreciated against its major counterparts in the
European session on Thursday, as rising virus cases across Europe
and reports of meddling in U.S. elections spooked markets.
Germany reported more than 11,200 new infections over the past
24 hours, marking a daily record since the outbreak of the
Spain and France passed the milestone of 1 million infections,
according to a tally from Johns Hopkins University.
The US Federal Bureau of Investigations said that Iran and
Russia are attempting to interfere in U.S. elections due on
U.S. officials accused Iran for sending threatening emails to
voters and warned that they would act swiftly.
Market research group Gfk said its forward-looking consumer
sentiment index fell more-than-expected to -3.1 from -1.7 in
All three sub components, namely economic and income
expectations and the propensity to buy declined in October. After
five rises in a row, the economic sentiment decreased seventeen
points to 7.1 points in October.
The euro weakened to 1.1825 versus the greenback, from a high of
1.1867 seen at 3:30 am ET. Should the euro falls further, 1.16 is
likely seen as its next support level.
The euro fell to a 3-day low of 123.80 against the yen, compared
to Wednesday's closing value of 124.02. The euro is likely test
support around the 119.5 area.
After rising to an 8-day high of 1.0749 at 4:00 am ET, the euro
pulled back to 1.0729 against the franc. The euro may face support
around the 1.06 region.
The euro eased off to 1.6655 against the aussie and 1.5542
against the loonie, from its previous high of 1.6713 and a 2-week
high of 1.5604, respectively. The euro is poised to find support
around 1.62 against the aussie and 1.54 against the loonie.
The euro was lower against the kiwi, at a 3-day low of 1.7751.
On the downside, 1.74 is seen as its next likely support level.
The European currency pared gains to 0.9019 against the pound,
from a high of 0.9046 set at 5:30 am ET. Immediate support for the
currency is likely seen around the 0.88 level.
Looking ahead, U.S. weekly jobless claims for the week ended
October 17 and existing home sales for September are due in the New
Eurozone flash consumer sentiment index for October is set for
release at 10:00 am ET.