CANBERA (Alliance News) - The euro slipped against the other major currencies in European deals on Tuesday, as Eurozone money market rates fell overnight, following the measures undertaken by the European Central Bank at its meeting last week.
Overnight interest rates charged by banks in the Eurozone, called EONIA, dropped to an all-time low of 0.053% after markets closed on Monday.
The European Central Bank took drastic measures last week to support the economy and cut repo rate to 0.15% and marginal lending rate to 0.40%, which capped the Eonia.
In economic news, the Bank of France released the results of its business confidence survey showing deterioration in confidence, with the corresponding index declining unexpectedly by 1 point to 97 in May.
The bank also said it expects the French economy to expand by 0.2% in the second quarter after the stagnation in the first quarter.
Industrial output data released by French statistical office INSEE showed that industrial production rebounded by 0.3% month-over-month in April, in line with expectations.
The euro that eased from an early high of 0.8093 against the pound slipped to a 1-1/2 year low of 0.8063. The next possible downside target for the euro-pound pair lies around the 0.80 zone.
UK industrial production expanded at a faster pace in April, the Office for National Statistics said today.
Industrial output gained 0.4% in April from March, when it grew by revised 0.1%. The rate matched economists' expectations.
The single currency dropped to a 5-day low of 1.3532 against the greenback, reversing from an early high of 1.3601. If the euro continues slide, it may find support around the 1.34 mark.
The euro fell to 138.47 against the yen for the first time since May 30. On the downside, the euro may seek support at the 137.00 mark. At yesterday's close, the pair was worth 139.32.
The euro pared gains to 1.2188 against the franc, from its prior high of 1.2196. The euro is likely to find support around the 1.21 level.
Swiss retail sales rose at a slower rate in April, a report from the Federal Statistical Office showed today.
Retail sales rose a calendar-adjusted 0.4% year-over-year in April, following a 3.4% rise in March.
Having advanced to 1.4549 against the aussie in early Asian deals, the euro reversed its way and dipped to a 6-1/2-month low of 1.4452. Extension of bearish move may lead the euro to a support around the 1.43 area.
The euro declined to a 5-day low of 1.4770 against the loonie and a 3-week low of 1.5904 against the NZ dollar, compared to Monday's closing values of 1.4818 and 1.5993,respectively. The euro may find support around 1.45 against the loonie and 1.58 against the kiwi.
Looking ahead, US wholesale inventories data for April is due at 10:00 am ET.
