Euro Retreats Amid Risk Aversion
13 Marzo 2023 - 07:40AM
RTTF2
The euro retreated from early highs against other currencies in
the European session on Monday, as European markets fell on
concerns over the fallout from the Silicon Valley Bank (SVB)
collapse.
The German DAX and France's CAC 40 index both tumbled around 2.1
percent, while the U.K.'s FTSE 100 was down 1.9 percent.
Over the weekend, the U.S. Treasury, Federal Reserve, and
Federal Deposit Insurance Corporation said they would "fully
protect" depositors, including those with assets above the
federally guaranteed $250,000 limit. Markets continue to worry
about contagion effects despite U.S. regulators rushing to contain
the fallout.
Investors are waiting to see whether the SVB collapse was a
systematic event, or a one-off.
Concerns surrounding the U.S. banking sector also raised
expectations for a potential pause in further interest-rate hikes
by the Federal Reserve.
In the Asian session today, the euro showed mixed trading
against its major counterparts. While the euro rebounded against
the U.S. dollar, it held steady against the pound, the Swiss franc
and the yen.
In the European session, the euro dropped to nearly a 4-month
low of 0.9739 against the Swiss franc and nearly a 1-month low of
142.07 against the yen, from early highs of 0.9834 and 144.38,
respectively. If the euro extends its down, it is likely to find
support around 0.95 against the franc and 140.00 against the
yen.
Against the NZ dollar, the euro fell to 4-day low of 1.7253 from
an early near 5-month high of 1.7415. The euro is likely to find
its support around the 1.70 area.
The euro edged down to 0.8830 against the pound, from an early
high of 0.8863. The euro may find its support level around the 0.87
area. Against the U.S. dollar, the euro slipped to 1.0663 from an
early near 1-month high of 1.0737. The next support level for the
EUR/USD pair is seen at 1.04 level.
Against the Australian and the Canadian dollars, the euro
dropped to 1.6058 and 1.4674 from an early more than a 1-year high
of 1.6205 and more than a 1-year high of 1.6205, respectively. The
euro is likely to find support around 1.66 against the aussie and
1.44 against the loonie.
Looking ahead, U.S. consumer inflation expectations data for
February is due to be released at 10:00 am ET.
Grafico Cross Euro vs Yen (FX:EURJPY)
Da Apr 2023 a Mag 2023
Grafico Cross Euro vs Yen (FX:EURJPY)
Da Mag 2022 a Mag 2023