The European currency climbed from near a 3-week low against the Swiss franc during Wednesday's early European trading. The euro also bounced back against the yen and the dollar, but slipped to a 17-day low versus the pound due to across the board rallying of the latter.
The economic reports such as the German retail sales and euro-zone unemployment, which were released during the session likely influenced the euro.
Germany's Federal Statistical Office announced that the retail turnover in real terms dropped 5.3% year-over-year in February, after falling 1.4% in January. Economists were looking a decline of 1.2%. A year ago, retail turnover was up 3.6%.
The Eurostat said Eurozone jobless rate stood at 8.5% in February, up from a revised 8.3% in January. Economists had predicted the rate of 8.3% for February. A year ago, the jobless rate was 7.2%.
Against the UK currency, the euro has been extending Wednesday's Asian session downtrend. The European currency slipped to a 17-day low of 0.9158 by about 4:30 am ET, compared to 0.9254 hit late Tuesday in New York. On the downside, the common currency of Europe may likely find support near the 0.895 level.
UK's housing equity withdrawal was estimated at minus GBP 8 billion in the fourth quarter, a quarterly report from the Bank of England revealed today. The negative number implies that individuals injected a net total of GBP 8 billion into housing equity in the fourth quarter. Economists had expected a negative balance of GBP 6.8 billion.
The European currency rallied against the Swiss franc after falling to a a near 3-week low of 1.5065 during Wednesday's early Asian trading. The euro rose to 1.5140 versus the franc by about 6:10 am ET, compared to 1.5101 hit late Tuesday in New York. If the euro climbs further, 1.52 is seen as the next likely resistance level.
The Swiss SVME Purchasing Managers' Index or PMI stagnated at a record low of 32.6 in March, a report from Credit Suisse said today. Economists had expected the reading to rise to 33 in March. The index has not posted a further fall for the first time in 15 months.
Against the currencies of Japan and US, the euro bounced back from early lows. The euro rose to 131.18 against the yen and 1.3247 against the dollar, moving from its early session lows of 129.90 and 1.3168, respectively. The euro-yen pair closed Tuesday's deals at 131.18 and euro-dollar pair at 1.3252.
The BoJ Tankan survey released earlier today showed a record decline for large manufacturers index. Japanese sentiment among large manufacturers plummeted at a record rate in the first quarter of 2009, posting a diffusion index score of -58. That was worse than analyst expectations for -55 following a score of -24 in the previous quarter.
It was the sixth straight quarter of decline, and the fall of 34 points from the previous survey in December marked the largest fall on record.
Data on ADP national employment, ISM manufacturing survey, Commerce Department's construction spending and pending home sales are the major economic releases expected from US in the New York session.
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