Euro Falls After ECB Praet Suggests LTRO Discussion In March
20 Febrero 2019 - 2:31AM
RTTF2
The euro declined against its major counterparts in the European
session on Wednesday, after the European Central Bank's chief
economist Peter Praet suggested that a new round of Targeted
Long-Term Refinancing Operation will be discussed as soon as the
meeting in March.
Speaking in Frankfurt, Praet indicated that "the discussion will
come very soon in the Governing Council," although it is unlikely
to take decisions at that time.
Praet added that discussion of the criteria of any new loans was
"a complicated thing, because it depends on the amount of stimulus
you want to bring or not to bring."
The new long-term funding would offer an insurance policy to
banks, which had been hurt by recent slowdown and began to feed
through to businesses, he told.
Figures from the Federal Statistical Office showed that
Germany's producer price inflation eased for a second straight
month to its lowest level in eight months in January.
The producer price index rose 2.6 percent year-on-year in
January, following a 2.7 percent in December. Economists were
looking for 2.20 percent inflation.
European stocks held steady as hopes for a Sino-U.S. trade deal
continued to build and British Prime Minister Theresa May ditched a
radical Brexiter plan to save her EU exit deal.
Investors await the minutes of the Federal Reserve's January
policy meeting for clues on policymakers' thinking on interest
rates and its balance sheet reduction policy.
The euro rose against its major opponents in the Asian session,
barring the pound.
The euro retreated to 125.49 against the Japanese yen, from more
than a 2-week high of 125.94 hit at 8:45 pm ET. The euro is seen
finding support around the 122.00 level.
Data from the Ministry of Finance showed that Japan logged a
merchandise trade deficit of 1,452.2 billion yen in January.
That missed expectations for a shortfall of 1,029.5 billion yen
following the 56.7 billion yen deficit in December.
Pulling away from an early session's high of 1.1358 against the
greenback, the euro edged down to 1.1325. The euro is likely to
challenge support around the 1.12 area.
The euro dropped to 1.1340 versus the Swiss franc, after having
risen to 1.1366 at 4:15 am ET. If the euro falls further, 1.12 is
likely seen as its next support level.
The single currency pared gains to 0.8686 against the pound,
from a high of 0.8714 seen at 6:00 am ET. The euro is poised to
find support around the 0.85 area.
The euro slipped to a 5-day low of 1.4933 against the loonie,
reversing from a high of 1.4994 touched at 8:00 pm ET. Next key
support for the euro is seen around the 1.47 region.
The European currency slightly eased back to 1.6507 against the
kiwi, off an early high of 1.6536. On the downside, 1.63 is
possibly seen the next support level for the euro.
On the flip side, the euro bounced off to 1.5865 against the
aussie, from an early session's low of 1.5816. The next key
resistance for the euro is seen around the 1.60 mark.
Data from the Australian Bureau of Statistics showed that
Australia wage prices rose a seasonally adjusted 0.5 percent on
quarter in the fourth quarter of 2018.
That was shy of expectations for an increase of 0.6 percent,
which would have been unchanged.
Looking ahead, at 10:00 am ET, Eurozone flash consumer sentiment
index for February is due.
The Fed will release minutes from the January 29-30 meeting at 2
pm ET.
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