(RTTNews) - During early European deals on Thursday, the euro declined against other major currencies after the European Central Bank's monthly bulletin revealed that the risks to the economic outlook for the euro area remain on the downside in an environment of particularly high uncertainty.
"Ongoing tensions in financial markets and unfavorable effects on financing conditions are likely to dampen the pace of economic growth in the euro area in the second half of this year", the bulletin said.
"The economic outlook remains subject to particularly high uncertainty and intensified downside risks", the bulletin added.
However, the ECB Governing Council said it continues to expect euro area economic activity to benefit from continued positive growth in the emerging market economies, the low short-term interest rates and the various measures taken to support the functioning of the financial sector.
The central bank urged euro area governments to implement substantial and comprehensive structural reforms decisively and swiftly.
The euro is now worth 1.3740 against the dollar and 105.48 against the yen, compared to yesterday's close of 1.3786 and 106.52, respectively. The next downside target level for the euro is seen at 105.0 against the yen and 1.370 against the dollar.
After hitting a high of 1.2379 against the franc at 1:50 am ET, the euro declined. As of now, the euro-franc pair is trading near yesterday's close of 1.2344. The near term support level for the euro is seen at 1.232.
Swiss producer and import prices declined more than expected in September, the Federal Statistical Office said today.
Year-on-year, the index declined 2 percent, faster than economists' forecast of a 1.9 percent fall. Compared to the previous month, the index fell 0.1 percent, in line with forecast.
The producer price index for the domestically produced goods dropped 0.1 percent month-on-month, and the import prices fell 0.3 percent.
The euro that climbed to 0.8783 against the pound at 3:25 am ET slipped thereafter. The pair is now worth 0.8755 with 0.874 seen as the next downside target level. At yesterday's close, the pair was quoted at 0.8760.
The U.K. visible trade deficit declined notably in August to GBP 7.8 billion from GBP 8.2 billion in July, the Office for National Statistics showed today. The deficit for August was also smaller than GBP 8.8 billion shortfall forecast by economists.
Looking ahead, trade data from the U.S. and Canada for August and the weekly jobless claims report for the week ended October 08 are expected to influence trading in the upcoming New York session.
