RTTN:Euro Weakens Against Most Majors On Eurozone Uncertainty
(RTTNews) - The euro declined against its most major counterparts in Asian deals on Thursday as an uncertainty over the eurozone debt crisis grew amid reports of a split among European leaders on a plan to resolve the region's debt crisis.
Reports suggested that an emergency meeting late Wednesday by Eurozone leaders including German Chancellor Angela Merkel and French President Nicolas Sarkozy ended up without any major agreements.
Investors fear that the failure to weed out the Franco-German differences over leveraging the European Financial Stability Facility and other key proposals before the crucial Eurozone summit may put Eurozone rescue at risk.
The leaders were attending a function in honor of outgoing European Central Bank president Jean-Claude Trichet at the Frankfurt Opera House.
Policymakers from the G-20 group of nations last Saturday urged Europe to soon resolve their debt crisis that is hurting the global economy. The G-20 said Europe needs to plan ways to fix the Euro-zone problems when EU leaders meet on October 23 in Brussels, where France and Germany are to articulate on ways to resuscitate an ailing banking sector.
The euro is also weakening today amid a weak Beige Book report released on Wednesday by the U.S. Federal Reserve.
The Beige Book noted that the twelve Fed districts indicated continued economic growth in September, although it said many districts described the pace of growth as "modest" or "slight" and generally noted weaker or less certain outlooks for business conditions.
The euro fell to a 2-day low of 0.8716 against the pound and the next downside target level for the euro is seen at 0.870. At yesterday's close, the euro-pound pair was quoted at 0.8724.
Against the US dollar, the euro slipped to a 2-day low of 1.3710, compared to Wednesday's close of 1.3759. On the downside, 1.365 is seen as the next target level for the euro.
The euro that closed yesterday's trading at 105.70 against the yen dropped to a 2-day low of 105.24. If the euro slips further, it may likely target the 104.8 level.
Looking ahead, Japan's final leading economic and coincident indexes for August are due at 1 am ET.
German PPI, Swiss trade data and the U.K. retail sales - all for September and the Swiss ZEW survey expectations for October are expected to influence trading in the European session.
The U.S. weekly jobless claims report for the week ended October 15, Philadelphia Federal Reserve's manufacturing survey for October, existing home sales and leading indicators for September are slated for release in the New York morning session.
