- Published on Monday, 27 February 2012 11:56
- Written by RTT News
The euro declined against most of its major rivals on Monday as stocks fell on concern that the rising oil prices could hurt the global economic growth.
Debt crisis in Europe and the lingering geopolitical tensions in Syria and Iran lifted the Brent crude prices that is hovering near a 10-month high below $125 a barrel in the previous session.
Thus far, the U.K. FTSE 100 index fell 0.66 percent, Germany's DAX dropped almost 1.2 percent and France's CAC-40 index slipped to 1.08 percent.
The meeting of G20 finance ministers and central bank governors held in Mexico concluded on Sunday, with G20 countries demanding Europe to strengthen its bailout fund.
The meeting of Eurozone ministers to be held in March will decide about boosting the region's firewall.
Meanwhile, the market is waiting for the outcome European Central Bank's Long-Term Refinancing Operation results, which is to be held on Wednesday.
In its first long-term refinancing operation in December, banks borrowed EUR 489 billion in three-year loans at low interest rates, which helped stabilizing financial markets.
In economic news, a leading indicator of the Eurozone economy increased for the second consecutive month in January, data from a survey by Conference Board showed today.
The leading economic index increased to 104.1 in January from 103.1 in December. Meanwhile, the coincident economic index, which measures the current situation, remained unchanged at 102.6 in January.
The euro slipped to 107.86 against the yen around 4:45 am ET, having depreciated almost 2 percent from Asian session's multi-month high of 109.97. The next likely support level for the pair is seen at 106.80.
The common currency also reached as low as 1.3421 against the dollar before holding steady around 3:45 am ET. This was almost 70-pips down from its Asian session's high of 1.3487. In the near-term, the pair may target support around the 1.34 level.
The single currency slipped to a 4-day low of 0.8462 against the pound around 3:45 am ET. The euro-pound pair is presently worth 0.8470 with 0.8450 seen as the next likely downside target level.
The euro traded in a tight range against the Swiss franc, moving between 1.2060 and 1.2045 in the early European trading on Monday. If the pair weakens further, it may re-test last week's fresh 3-week low of 1.2043.
Looking ahead, the U.S. pending home sales for January is due for release in the New York morning session.
by RTT Staff Writer