Euro Lower As China Concerns Sap Sentiment
21 November 2022 - 11:10AM
RTTF2
The euro fell against its most major rivals in the European
session on Monday, as investors worry that fresh COVID-19
restrictions in China will lead to a slowdown in the economic
growth.
Chinese authorities locked down part of the manufacturing hub of
Guangzhou for five days and urged residents of the sprawling
Chaoyang district to remain at home today.
Beijing reported three Covid deaths over the weekend, despite a
strict zero-COVID policy.
European Central Bank chief economist Philip Lane said that the
central bank is unlikely to consider a very large hike such as 75
basis points when it meets in December.
German bond yields fell, with the yield on the 10-year Bund
dropping to 2.005 percent.
The euro weakened to a 10-day low of 1.0226 against the
greenback and more than a 2-month low of 1.6718 against the kiwi,
from its early highs of 1.0333 and 1.6803, respectively. The next
possible support for the euro is seen around 0.99 against the
greenback and 1.66 against the kiwi.
The euro touched 1.3738 against the loonie, setting a 5-day low.
On the downside, 1.36 is likely seen as its next support level.
The euro depreciated to a 5-day low of 0.9800 against the franc
and near a 3-week low of 0.8658 against the pound, down from its
prior highs of 0.9854 and 0.8698, respectively. The euro may test
support around 0.97 against the franc and 0.85 against the
pound.
In contrast, the euro rebounded to 1.5506 against the aussie and
145.46 against the yen, off its early low of 1.5444 and a 5-day low
of 144.33, respectively. The currency is likely to find resistance
around 1.59 against the aussie and 150.00 against the yen.
Euro vs Sterling (FX:EURGBP)
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