During early European deals on Monday, the European currency plunged to new multi-year lows against the currencies of US, Switzerland and Japan. On the other hand, the euro showed strength against the British pound.
The German business sentiment index deteriorated to 90.2 in October from to 92.9 in September, a monthly survey from the Munich-based Ifo research institute reportedly showed today. The indicator stood below the expected level of 91 in October.
Against the US dollar, the European currency traded down during early deals on Monday. At 5:10 am ET, the euro- dollar pair declined to 1.2336, compared to Friday's closing value of 1.2605. This set the lowest point for the pair since April 28, 2006. The pair is currently trading at 1.2443, with 1.21seen as the next target level.
Against the British pound, the single currency edged higher during Monday's early deals. The euro-pound pair that closed Friday's North American session at 0.7908 is currently trading at 0.8125.
The British pound showed weakness against its major counterparts as House prices in Great Britain decreased faster than ever recorded before in October.
Hometrack said its house price index declined 1.3 percent compared to September, and was 7.3 percent lower than in October 2007. Both figures were the lowest since Hometrack began its survey in July 2000. Agreements for sale in October increased 5.4 percent the first increase in five months.
The European currency edged down to 1.4298 against the Swiss franc at 5:10 am ET Monday. This set a fresh record low for the pair. The euro-franc pair closed Friday's North American session at 1.4745.
The euro fell to 113.66 against the Japanese yen by about 5:10 am ET Monday, compared to Friday's closing value of 119.26. This set a lowest point for the pair since May 22, 2002. On the downside, the single currency may likely find support near the 107.47 level.
Japanese corporate service prices inched up 0.1 percent on year in September, the Bank of Japan said today, marking the slowest rise since January 1985. That was well below analyst expectations that called for an annual increase of 1.2 percent, and it was also sharply lower than the 1.4 percent increase in August.
The Group of Seven industrial countries today expressed its concern over the yen's recent upward movement. In an emergency statement, the finance ministers of the G7 said they were worried about the Japanese currency's rise and its impact on the global economy as well as financial system.
The Commerce Department is due to release its new home sales report for September at 10 AM ET on Monday. The consensus estimate calls for a decline in new homes sales to 450,000.
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