EUR fell as low as $1.4122, breaking below a key level at $1.4150, which analysts said that this leaves open the prospect of further falls towards $1.4000. On the other hand, traders said bids above $1.4100 could limit falls for now. Near term support is seen near its April 1 low of at $1.4061.
GBP fell to 3 week low versus the USD and slipped against the EUR today after British industrial output rose much less than expected in March, extinguishing hopes for an upward revision to UK growth. The data showed that the industrial output rose 0.3$ in March after a 1.2% fall in February, less than half the 0.8% gain forecast by economists.
EUR/GBP continued to break lower and remains on course for 86.70, the 38.2% retracement of the entire move from the June 2010 low. This is also the January 2011 high and traders would allow it to hold the initial test and provoke some consolidation. The pair opened this session at 0.8682 and fell as low as 0.8674.
CHF moved higher against the EUR today, with the market keen for any news on Greece’s debt problems. EUR, injured by concern that the problems in Greece could worsen, hovered just above 3 week low against the dollar. Traders buy the CHF during times of heightened uncertainty. Concerns about euro zone sovereign debts pushed the pair to an all-time record of around 1.24 in late December. EUR/CHF opened the session trading at 1.2601 and fell as low as 1.2549.
AUD and other commodity currencies did not react to China’s move to increase reserve ratios, although analysts warned this could add to the risk-off attitude in markets. Among commodity-linked currencies, the AUD> was particularly weak, felling more than 1% to a 1 week low of $1.0566 after surprisingly weak Australian jobs data reduced market expectations of a rate hike.