Euro Falls On Fears Of Lockdown In China's Capital Beijing

euro march12 25apr22 lt

The euro was lower against its most major counterparts during European deals on Monday, as cheer about French President Emmanuel Macron's reelection was outweighed by concerns about the U.S. Federal Reserve's rapid policy tightening, as well as a spike in Covid cases in China's capital Beijing and the possibility of a hard lockdown to contain the outbreak.

Beijing's biggest district Chaoyang started three days of mass testing of those working and living in the region.

Cases continue to increase in Shanghai, where authorities have erected fences outside residential buildings designated as "sealed areas."

In France, Macron defeated far-right politician Marine Le Pen in the runoff vote held on Sunday and secured a second term in office.

Macron won 58.5 percent of the vote in the final round of the presidential election, while Le Pen received 41.5 percent of the vote.

European leaders cheered the victory of Macron, who pledged to be a "president for all" in a divided nation.

Survey data from the ifo Institute showed that Germany's business confidence unexpectedly improved in April as the economy showed its resilience after the initial shock of the Russian attack.

The business climate index rose to 91.8 in April from 90.8 in March. The reading was forecast to fall to 89.1.

The currency has been trading in a negative territory against its major rivals in the Asian session, except the pound.

The euro depreciated to 1.0707 against the greenback, its weakest level since March 2020. The pair had closed Friday's deals at 1.0796. Next immediate support for the euro is seen around the 1.05 level.

The euro touched a 6-day low of 137.17 against the yen, down from Friday's close of 138.74. Further fall in the currency may challenge support around the 133.00 level.

Final data from the Cabinet Office showed that Japan's leading index declined more than initially estimated in February.

The leading index, which measures the future economic activity, fell to 100.0 in February from 101.2 in January. The initial score was 100.9.

The euro was down against the franc, at a 5-day low of 1.0267. At Friday's close, the pair was valued at 1.0330. Should the euro dips further, 1.01 is possibly seen as its next support level.

The European currency pulled back to 1.4923 against the aussie and 1.6204 against the kiwi, from its Asian session's near a 6-week high of 1.5055 and a 1-1/month high of 1.6357, respectively. The euro was worth 1.4900 against the aussie and 1.6260 against the kiwi at Friday's close. The euro may target support around 1.47 against the aussie and 1.58 against the kiwi.

After a rise to nearly a 2-week high of 1.3760 at 8 pm ET, the euro retreated to 1.3654 against the loonie. The euro was trading at 1.3720 per loonie at last week's close. Immediate support for the euro is likely located around the 1.34 level.

The euro, however, climbed to 0.8441 against the pound, which was its highest level since April 1. The euro-pound pair had finished last week's trading session at 0.8402. The euro is seen finding resistance around the 0.86 level.

Looking ahead, Canada wholesale sales for March will be published in the New York session.

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