Euro Weakens Ahead Of ECB Rate Decision
15 Outubro 2024 - 10:17AM
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The euro declined against its most major counterparts in the New
York session on Tuesday, ahead of the European Central Bank meeting
that is widely expected to deliver another interest rate cut after
recent data signaled continued weakness in the euro zone
economy.
The ECB is widely anticipated to reduce interest rates by 25
basis points, which would bring the deposit facility rate to 3.25
percent.
Headline inflation dropped below the ECB's target in September,
bolstering the possibility of rate cuts in October and
December.
ECB policymakers, including President Christine Lagarde, hinted
at further monetary easing amid easing inflationary pressures.
Germany's wholesale prices fell at the steepest pace in five
months in September, while investor confidence in the country
improved for the first time in four months, separate data
revealed.
The euro reached as low as 0.9381 against the franc. If the
currency falls further, it is likely to test support around the
0.92 region.
The euro fell to near a 2-week low of 0.8325 against the pound
and a 4-day low of 162.34 against the yen, off its early highs of
0.8353 and 163.43, respectively. The currency is seen finding
support around 0.82 against the pound and 158.00 against the
yen.
The euro touched a 6-day low of 1.7875 against the kiwi. The
currency may challenge support around the 1.74 level.
Against the loonie, the euro eased and was trading at 1.5031,
down from an early multi-week high of 1.5096. The currency is
likely to locate support around the 1.48 level.
In contrast, the euro edged up to 1.6266 against the aussie. The
currency is poised to challenge resistance around the 1.67
level.
After falling to more than a 2-month low of 1.0884 against the
greenback in the previous session, the euro moved up to 1.0916.
Immediate resistance for the currency is seen around the 1.12
level.
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