RTTN:Euro Slides As France Business Confidence Worsens
The euro declined against other major currencies in the early European session on Tuesday after data showed that France business confidence declined more than expected in October.
Data released by statistical office Insee showed that the headline business confidence index dropped to 85 in October from 90 in September, which was unchanged from the preceding month. Economists had forecast the index to remain unchanged in October too.
Spanish worries also continued to euro's selling pressure as Moody's ratings agency last night lowered its debt rating for five Spanish regions by one or two notches each, citing the region's weak financial position and looming debt redemptions.
Europe's permanent bailout fund, ESM, is also facing another challenge as European Court of Justice in Luxembourg is considering a hearing against its legal validity. The complaint, which was filed by an independent member of the Irish parliament, is seeking to ban ESM in its current form.
The euro slipped to as low as 0.8140 against the pound, compared to Monday's closing value of 0.8157. The next support level for the euro is seen at 0.81.
The European currency that approached a 5-day high of 1.2116 against the franc fell and the pair is trading at 1.2100. At yesterday's close, the pair was worth 1.2107.
Against the yen, the euro is worth 103.87, down from Asian session's 5-1/2-month high of 104.60. If the euro slides further, it is likely to target 103.00 level.
The euro also lost ground against the U.S. dollar, declining to 1.3022. On the downside, the euro-greenback pair is likely to breach 1.30 level.
The U.K. mortgage approvals from British Bankers' Association are due shortly.
