Euro Drops Ahead Of Dutch Parliamentary Elections
March 13 2017 - 2:46AM
RTTF2
The euro slipped against its major counterparts in the European
session on Monday, as investors became nervous ahead of the Dutch
election on Wednesday, amid rising popularity of far-right party in
opinion polls.
Polls suggest that the conservative Prime Minister Mark Rutte is
running almost neck-and-neck with eurosceptic candidate Geert
Wilders, who wants to take the Netherlands out of the European
Union and stop Muslim immigration.
Although the possibility of a eurosceptic party winning the
election is slim, its strong performance could lead to slippage of
votes for the mainstream parties, resulting in the possibility of a
coalition government.
The European Central Bank President Mario Draghi will speak in
Frankfurt later in the day, with investors awaiting more clues
about the policy direction.
The euro was trading in a positive territory in the Asian
session, with the exception of the franc.
The euro retreated to 1.0663 against the greenback and 0.8731
against the pound, from its early near 5-week high of 1.0714 and
near a 2-month high of 0.8787, respectively. The euro is seen
challenging support around 1.04 against the greenback and 0.84
against the pound.
Pulling away from an early 1-1/2-month high of 122.89 versus the
yen and more than 3-month high of 1.0825 versus the Swiss franc,
the euro fell back to 122.14 and 1.0744, respectively. The next
possible support for the euro may be found around 118.00 against
the yen and 1.04 against the franc.
The single currency eased to 1.4069 against the aussie, 1.5359
against the kiwi and 1.4342 against the loonie, from its previous
6-week high of 1.4184, more than 4-month high of 1.5454 and near a
4-month high of 1.4418, respectively. Continuation of the euro's
downtrend may see it challenging support around 1.38 against the
aussie, 1.50 against the kiwi and 1.41 against the loonie.
Looking ahead, U.S. labor market conditions index for February
is set to be published in the New York session.
At 8:45 am ET, European Central Bank board member Sabine
Lautenschlaeger is expected to speak in Dublin.
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