RTTN: Euro Slides Against Pound, Advances Against Other Majors
(RTTNews) - During European deals on Wednesday, the euro slipped against the pound, but it strengthened against the currencies of U.S., Switzerland and Japan.
The Eurostat said in a report that Euro-zone industrial producer price index or PPI dropped 7.7% year-on-year in September, compared with a 7.5% fall in the previous month. The September month producer prices came in line with economists' expectations.
Month-on-month, producer prices decreased 0.4% in September, in contrast to a 0.5% growth in the preceding month, revised from 0.4% increase estimated initially. Economists were looking for a decline of 0.4%.
Meanwhile, a survey data released by the Markit Economics showed that the final Euro-zone composite output index rose to 53 in October from 51.1 in September,. That matched economists' expectations.
The latest PMI figure signal an expansion of private sector goods and services output for the third month running and the fastest rate of increase since December 2007, the Markit said.
The euro that closed yesterday's trading at 1.4726 against the dollar rose to 1.4774 in early deals on Wednesday. The next upside target level for the European currency is seen at 1.486.
A gain in most Asian and European stocks reduced demand for the safe-haven currencies such as dollar and the yen.
During early deals on Wednesday, the euro climbed to a 2-day high of 134.27 against the yen. This may be compared to Tuesday's closing value of 133.04. If the euro-yen pair advances further, it may target the 136 level.
The Bank of Japan said today that the monetary base in Japan was up 4.4 percent on year in October, coming in at 92.86 trillion yen. That follows the 4.5 percent annual increase in September.
At 2:05 am ET Wednesday, the euro reached a high of 1.5123 against the Swiss franc. Although the euro eased thereafter, it rebounded shortly and the pair is currently trading at 1.5115 with 1.513 seen as the near term resistance level. The euro-franc pair was worth 1.5108 at yesterday's close.
The euro declined to a 6-day low of 0.8923 against the pound in early deals on Wednesday. On the downside, 0.8915 is seen as the next target level for the euro. At yesterday's close, the euro-pound pair was quoted at 0.8963.
UK's CIPS/Markit Purchasing Managers' Index for the service sector rose to 56.9 in October from 55.3 in September, a monthly survey from the Markit Economics showed. The index stood above the long-term series average and the expected 55.5.
