2020.04.0812:03:00UTC+00Euro Lower As Eurogroup Meeting Disappoints

The euro depreciated against its major counterparts in the European session on Wednesday, as Eurozone finance ministers failed to resolve impasse and agree on a package of measures to cushion the economic fallout from the coronavirus outbreak.

Ministers were deadlocked on the issue of coronabonds - jointly issued bonds as part of the crisis response.

While Italy, Spain, France and some other EU states favour common debt issuance, the Netherlands has rejected this idea.

The finance ministers will resume negotiations on Thursday.

European stocks fell after Spain's daily toll of coronavirus deaths rose for the first time in five days and the death toll surpassed 10,000 in France.

The German economy will shrink by nearly 10 percent in the second quarter as the coronavirus paralyses the country, six leading research institutes warned today.

The euro fell to a 2-day low of 1.0551 against the franc, from a high of 1.0568 set at 1:45 am ET. If the euro declines further, 1.02 is likely seen as its next support level.

The euro slipped to 1.0830 against the greenback, after touching as high as 1.0902 at 7:30 pm ET. On the downside, 1.06 is likely seen as its next support level.

The currency moved down to a 2-day low of 0.8791 against the pound, from yesterday's closing value of 0.8828. The euro is poised to find support around the 0.86 level.

The euro retreated to 1.7569 against the aussie, 1.5212 against the loonie and 1.8166 against the kiwi, off its early highs of 1.7758 and 1.5275 and a 2-day high of 1.8302, respectively. The euro is seen challenging suport around 1.61 against the aussie, 1.49 against the loonie and 1.72 against the kiwi.

The euro declined to 117.92 against the yen and held steady thereafter. The pair had ended Tuesday's trading at 118.41.

Looking ahead, at 8:15 am ET, Canada housing starts for March are due.

At 8:30 am ET, Canada building permits for February will be released.

The Fed minutes from the March meeting are set for release in the New York session.