The euro fell against most major currencies in the early European session on Friday as traders cut holdings of riskier assets, ahead of talks between U.S. President Barack Obama and Republican lawmakers for avoiding "fiscal cliff".
Obama will meet with congressional leaders today for budget and tax negotiations to avert so-called "fiscal cliff" and help the U.S. economy from falling back to recession.
Traders also took a cautious stance amid uncertainty for Greek and Spanish financial aid.
The euro area current account surplus declined to EUR 0.8 billion in September from EUR 10.9 billion in August, the European Central Bank said today.
The surplus in goods account halved to EUR 4.5 billion from EUR 8.4 billion last month. Likewise, the surplus in services dropped to EUR 6.4 billion from EUR 8.1 billion a month ago.
Moreover, the deficit in current transfers widened to EUR 10.1 billion from EUR 9.2 billion. The income account balance remained flat compared to last month's surplus of EUR 3.5 billion.
International Monetary Fund Managing Director Christine Lagarde said the lender is committed to ensure that Greece economy return to a sustainable path.
She will meet Eurozone leaders in Brussels on November 20 to forge a deal that would help Greece to get back on its feet.
The euro is trading at 1.2731 against the greenback with 1.27 seen as the next immediate downside target level. The euro-greenback pair closed deals at 1.2783 yesterday.
Against the yen, the euro reversed its direction and fell, with pair now worth 103.08. If the euro slides further, it may break 102.7 level. At Thursday's close, the pair was quoted at 103.77.
The euro reached 0.8023 against the pound, its lowest level since November 14. This may be compared to yesterday's close of 0.8058. On the downside, the euro is likely to breach 0.80 level.
The European currency that closed yesterday's deals at 1.2799 against the Canadian dollar declined to a 2-day low of 1.2749. If the euro slides further, it may break 1.27 level.
Against the aussie, the euro fell to 1.2325 and held steady thereafter. The euro is likely to face next support level at 1.23.
At 9:15 am ET, U.S. industrial production for October is due.
