The euro was lower in the European session on Wednesday, as European shares fell amid concerns over the impact of the Delta coronavirus variant in the global economic recovery.

A spike in global coronavirus infections and associated restrictions outweighed optimism over positive economic data.

The U.S. jobs data is due on Friday, which could provide more clarity on the Federal Reserve’s policy outlook.

The euro was hurt by a strong dollar, as a strong economic performance could add pressure on policymakers to act sooner on rate hikes.

Eurozone inflation fears eased after data showed that the bloc’s price growth slowed in June.

Inflation came in at 1.9 percent in June, as expected, down from 2 percent in the previous month.

The euro dropped to a 2-day low of 0.8571 against the pound, from a high of 0.8609 seen at 3:15 am ET. On the downside, 0.84 is possibly seen as its next support level.

The euro edged down to 1.1884 against the greenback, 131.28 against the yen and 1.4730 against the loonie, off its early highs of 1.1909 and 131.66 and a 9-day high of 1.4772, respectively. The euro may test support around 1.16 against the greenback, 130.00 against the yen and 1.45 against the loonie.

In contrast, the euro touched an 8-day high of 1.5861 against the aussie and a 1-week high of 1.7044 against the kiwi, up from Tuesday’s closing values of 1.5832 and 1.7002, respectively. The euro is seen finding resistance around 1.62 against the aussie and 1.74 against the kiwi.

The European currency climbed to a 6-day high of 1.0974 against the franc, after dropping to a 2-day low of 1.0951 at 5 pm ET. If the euro strengthens further, 1.12 is likely seen as its next resistance level.

Looking ahead, U.S. ADP private payrolls data for June is scheduled for release at 8:15 am ET.

Canada GDP data for April and industrial product price index for May, as well as U.S. pending home sales for the same month will be released in the New York session.


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