News Column

Euro Declines Amid Risk Aversion

July 21, 2014

BRUSSELS (Alliance News) - The European currency weakened against most major currencies in the European session on Monday amid risk aversion, as European stocks declined on worries over ongoing concerns in Ukraine and the Middle East.

The UK'sFTSE 100 index is currently down 0.30% or 20.11 points at 6,729, France's CAC 40 index is down 0.28% or 12.09 points at 4,323 and Germany's DAX is down 0.66% or 64.49 points at 9,655.

EU foreign ministers will meet in Brussels today to consider tough sanctions on Russian individuals and companies over the downing of a Malaysian jet.

The U.N. Security Council is due to vote on a resolution condemning the "shooting down" of the Malaysian passenger plane and demanding access to the plane crash site.

In a meeting late Sunday, the U.N. Security Council called for an immediate end to the Israeli military operation in Gaza and urged to protect the civilians under international humanitarian law. U.N. chief Ban Ki-moon condemned Israel's latest incursion as "atrocious", saying it must do far more to protect civilians.

The meeting came after Israel-Hamas fighting in Gaza intensified on Sunday, killing around 100 people.

In the economic news, German producer prices continued to decline in June, albeit at a slower pace, data from the German statistical office Destatis showed. Producer prices fell 0.7% year-over-year in June, confirming consensus estimates, following the 0.8% drop in May. The latest decline was the smallest since December.

The euro fell to 1.3518 against the US dollar, from an early 5-day high of 1.3548. .The euro may find support near the 1.34 region.

Pulling away from an early high of 0.7923 against the pound, the euro slipped to 0.7911. If the euro extends its decline, it is likely to find support around the 0.78 zone.

According to Lloyds Bank Spending Power report, UK consumer confidence declined in June for the first time in 2014. The overall consumer confidence index fell by a percentage point to 145 in June.

The euro dropped to 1.2145 against the Swiss franc, from an early 5-day high of 1.2155. Continuation of bearish trend may lead the euro to a support around the 1.213 mark.

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Source: Alliance News

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