Euro Weakens Against Majors
The euro declined against its major rivals in European deals on Monday, as Eurozone bond yields fell after anti-euro party, Alternative f?r Deutschland, attained dramatic gains in Sunday's regional elections in Germany and emerged as the second-biggest party behind the German Chancellor Angela Merkel's CDU party.
The anti-refugee party AfD party won 15.1% of the vote in Baden-Wuerttemberg, 12.5% in Rhineland-Palatinate and 24% in Saxony-Anhalt, indicating increasing voter turnout due to Merkel's pro-refugee stance.
The CDU scored just 30.3 percent in Baden-W?rttemberg, 31.8 percent in Rhineland-Palatinate and 29.8 percent in Saxony-Anhalt, with chances of a coalition government highly likely.
The benchmark German 10-year bond yield fell 0.25 percent, while that of 2-year equivalents were lower by 0.47 percent.
In economic news, data from Eurostat showed that Eurozone industrial production rebounded at a faster than expected pace in January.
Industrial production grew 2.1 percent month-on-month, reversing a 0.5 percent fall in December. Economists had forecast a 1.7 percent rise for January.
The currency was moderately higher in Asian trading, as firmer oil prices and strong cues from Wall Street lifted sentiment.
In European deals, the euro edged down to 126.22 against the yen, off its early high of 127.15. If the euro-yen pair extends slide, 125.00 is likely seen as its next support level.
The single currency depreciated to 1.1105 against the greenback, down by 0.64 percent from a high of 1.1176 hit at 7:15 pm ET. The euro is seen finding support around the 1.10 region.
The euro fell to a 4-day low of 0.7736 against the pound, compared to last week's closing value of 0.7747. On the downside, the euro may find support around the 0.76 area.
The euro pared some of its early gains against the franc, trading at 1.0967, down from its prior high of 1.0991. The next possible support for the euro is seen around the 1.08 mark.
The 19-nation currency slipped to 1.4700 against the loonie, after having advanced to 1.4795 at 2:45 am ET. The euro is poised to locate support around the 1.46 zone.
The euro fell back to 1.4717 against the aussie, heading closer to pierce its early 4-day low of 1.4699. Continuation of the euro's downtrend may see it finding support around the 1.45 region.
Looking ahead, Reserve Bank of New Zealand Governor Graeme Wheeler is expected to speak at the Institute of Directors in Auckland at 3:00 pm ET.
The material has been provided by InstaForex Company - www.instaforex.com
