Euro Lower Amid Global Growth Fears
April 26 2022 - 4:07AM
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The euro fell against its major rivals in the European session
on Tuesday, amid global growth concerns led by Covid lockdowns in
China and the prospects of aggressive rate hikes by the U.S.
Federal Reserve.
Investors fear that strict lockdown measures would be extended
to Beijing as the authorities decided to expand its Covid-19 mass
testing from one district to another 10 districts.
The city of Anyang in central China and Dandong on the border
with North Korea announced lockdowns driven by the spread of the
omicron variant.
Indications that the Fed will tighten monetary policy
aggressively at upcoming meetings sapped investor sentiment.
European Central Bank policymaker Martins Kazaks said that
interest rates should be lifted soon and there is room for up to
three hikes this year.
The euro fell to 1.0672 against the greenback, its weakest level
since March 2020. Next immediate support for the euro is seen
around the 1.05 level.
The euro was down against the franc and the yen, at a 1-week low
of 1.0227 and near a 2-week low of 136.04, respectively. The
currency is likely to face support around 1.01 against the franc
and 133.00 against the yen.
The euro weakened to 4-day lows of 1.4812 against the aussie and
1.6092 against the kiwi, down from its previous highs of 1.4944 and
1.6210, respectively. The euro is seen finding support around 1.45
against the aussie and 1.58 against the kiwi.
The euro reached as low as 1.3601 against the loonie, setting a
5-day low. The euro may locate support around the 1.34 level.
In contrast, the euro recovered to 0.8420 against the pound,
from an early 4-day low of 0.8393. If the currency rises further,
0.86 is likely seen as its next resistance level.
Looking ahead, U.S. consumer confidence index for April, new
home sales for March, FHFA's house price index and
S&P/Case-Shiller home price index for February will be out in
the New York session.
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