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FX.co ★ Euro Falls As German Ifo Business Sentiment Worsens

Euro Falls As German Ifo Business Sentiment Worsens

The euro depreciated against its major counterparts in the European session on Wednesday, as German business sentiment weakened in November, driven by ongoing supply chain disruptions and the fourth wave of the pandemic.

Survey results from the ifo Institute showed that the business confidence index fell to 96.5 in November from 97.7 in October. The reading was forecast to drop to 96.6.

The current conditions indicator came in at 99.0, in line with expectations.

Investor focus on a slew of U.S. data due later in the day, which includes jobless claims, consumer spending and GDP. The minutes from the U.S. Federal Reserve's recent policy meeting will be closely watched for any indications about stepping up the pace of the Fed tapering.

The euro dropped to 2-day lows of 128.69 against the yen and 1.5522 against the aussie, off its early highs of 129.56 and 1.5611, respectively. If the euro continues its fall, 126.00 and 1.50 are possibly seen as its next support levels against the yen and the aussie, respectively.

The euro retreated from its prior highs of 1.1255 against the greenback and 1.4271 against the loonie, falling to a 1-1/2-year low of 1.1203 and a 1-week low of 1.4201, respectively. The euro is likely to find support around 1.10 against the greenback and 1.40 against the loonie.

The euro edged down to 0.8388 against the pound, from a high of 0.8415 touched at 3:00 am ET. Next key support for the euro is likely seen around the 0.82 region.

The euro eased off to 1.0481 against the franc, after rising to 1.0504 in the Asian session. The next likely support for the euro is seen around the 1.03 level.

The European currency retreated to 1.6207 against the kiwi, following nearly a 2-week high of 1.6298 seen at 11:30 pm ET. The euro is seen finding support around the 1.60 level.

Looking ahead, U.S. durable goods orders, personal income and spending data, new home sales, wholesale inventories and advance goods trade balance, all for October, GDP data for the third quarter, weekly jobless claims for the week ended November 20 and University of Michigan's final consumer sentiment index for November will be released in the New York session.

The Fed minutes from the November 2-3 meeting are set for release at 2:00 pm ET.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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