(RTTNews) - Friday in early European deals, the euro weakened against other major currencies as stocks declined after disappointing U.S. economic datareleased yesterday sparked risk aversion. The euro tumbled to fresh multi-week lows against the yen and the franc and a 4-day low against the dollar.
Renewed fears that the U.S. economy may be heading into a "double dip" recession spurred safe-haven buying in less risky assets such as gold, yen, and U.S. and Japanese government bonds.
The U.S. jobless claims last week rose to 500,000, the highest level in nine months, and the Federal Reserve Bank of Philadelphia's manufacturing index for August unexpectedly tumbled, increasing market concern over the U.S. economic recovery.
Investors in Asia remained cautious on speculation that the Bank of Japan may ease its monetary policy
Market players are now keeping an eye on the meeting of Prime Minister Naoto Kan and BOJ Governor Masaaki Shirakawa expected to come as early as Monday to discuss the yen's strength and also a slew of U.S. economic data due out next week.
Thus far, Germany's DAX fell 0.5%, France's CAC 40 index plunged 0.4% and U.K.'s FTSE 10 index also lost 0.4%.
The euro that showed choppy trading against the dollar in Asian deals on Friday lost ground during early European session. The euro-dollar pair that closed yesterday's trading at 1.2825 is presently trading at a 4-day low of 1.2752. The next downside target level for the euro is seen at 1.273.
During early European deals on Friday, the euro plunged against the Japanese yen. As of now, the euro-yen pair is trading at a fresh 7-week low of 108.95 with 107.3 seen as the next downside target level. At yesterday's close, the pair was quoted at 109.52.
After a brief recovery, the euro weakened against the Swiss franc in early European deals on Friday. The euro-franc pair is now trading at a fresh 7-week low of 1.3180, compared to 1.3235 hit late New York Thursday. If the euro declines further, it may likely target the 1.308 level.
The euro that soared to 0.8249 against the pound at 4:00 am ET Friday declined thereafter. At present, the euro-pound pair is trading at 0.8215, compared to yesterday's close of 0.8223. The next downside target level for the euro is seen at 0.820.
No major economic reports were released from Europe today.
