Euro Mixed Against Majors As Markets Focus On ECB Meeting

Euro Mixed Against Majors As Markets Focus On ECB Meeting


The euro showed mixed trading against other major currencies in European deals on Monday as investors digested the outcome of the European Union summit held last week and have now turned their attention to the unfolding week's European Central Bank monetary policy meeting.
The ECB is scheduled to hold its regular monthly policy meeting in Frankfurt on Thursday, just a week after Eurozone leaders reached a deal to rescue the region's troubled banks.
Speculation grows that the central bank is likely to reduce rates by 25 basis points to 0.75 percent, a move that could weigh on the euro.
Though hopes of an interest rate cut by the ECB may strengthen the single currency in the coming days, the U.S. market holiday on Wednesday and the much-anticipated non-farm payrolls data due to be released on Friday may prompt investors to trade currencies in a narrow-range for most of this week.
The euro declined against its major counterparts in today's Asian trading as investors doubted the outcome of the EU summit last week, reasoning that it lacked the necessary detail to ease concerns over European debt problems over the long-term.
The euro has extended its previous session's slide against commodity currencies in early European deals and showed directionless trading against the franc and pound. Against the dollar and yen, the euro that attempted to recover its Asian session's losses pulled back shortly.
The euro is currently worth 1.2630 against the dollar and 100.50 against the yen, down from highs of 1.2669 and 101.01, hit respectively at 5:15 am ET. If the euro weakens further, it will break its Asian session lows of 1.2613 against the dollar and 100.36 against the yen.
Against the pound, the euro showed choppy trading after hitting a low of 0.8056 at 3:10 am ET. At present, the euro-pound pair is worth 0.8060.
Elsewhere, the euro is trading at a 4-day low of 1.2844 against the Canadian dollar and near a 4-month low of 1.2309 against the Australian dollar. The next downside target level for the euro is seen at 1.282 against the loonie and 1.220 against the aussie.
The euro is also trading at a 4-day low of 1.5723 against the New Zealand dollar, with 1.560 seen as the next downside target level.
The euro-franc pair is presently worth 1.2017, just coming off a low of 1.2012 hit early in the session.
The final June manufacturing PMI reports from Italy, Germany, France and Eurozone, which were released in the session failed to influence the euro.
The Eurozone Purchasing Managers' Index for the manufacturing sector remained unchanged in June at 45.1 from the prior month, but stayed slightly above the flash estimate of 44.8, final data from Markit Economics showed.
Looking ahead, the U.S. ISM manufacturing index for June and construction spending for May are scheduled for release in the New York morning session.
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