2008.12.2404:52:00UTC+00Euro Plummets To New Multi-week Low Against Swiss Franc

The euro dropped to a new multi-week low against the Swiss franc in early European trading on Wednesday. The euro also weakened against the yen. On the other hand, the euro traded higher against the currencies of US and UK. The euro thus jumped to a 2-day high against the pound.

In early trading on Wednesday, the euro slipped to a new multi-week low of 1.5078 against the Swiss franc. This may be compared to Tuesday's North American session close of 1.5162. If the euro-franc pair slides further, it is likely to target the 1.472 level.

The euro, which closed yesterday's trading at 126.68 against the Japanese yen declined to 126.03 in early trading on Wednesday. If the euro-yen pair moves down further, it may find support around the 124.3 level.

In economic news from Japan, an index measuring sentiment among large companies fell sharply in the fourth quarter of 2008, data released by the Cabinet Office revealed today, touching its lowest score since the index started in 2004. The Q4 reading came in at a record low -35.7 for the period of October through December, after posting a score of -10.2 in the previous three months.

Against the UK currency, the euro fell to 0.9439 at 1:40 am ET Wednesday. Thereafter, the euro reversed direction and hit a 2-day high of 0.9511 by about 4:20 am ET. On the upside, 0.953 is seen as the next target level for the euro. The euro-pound pair was worth 0.9454 at yesterday's close.

The pound ticked down as Britain's Royal Institution of Chartered Surveyors said today that the house prices may fall about 10 percent next year as the country's recession deepens.

At the same time, RICS predicts property sales to rise by 10% next year. Lenders are likely to remain cautious and increasingly gloomy economic picture suggest that house prices will continue to decline in 2009, the report showed.

According to British Bankers' Association, the number of house purchases approved in the UK fell to 17,773 in November from 20,767 in the previous month. Approvals for re-mortgaging in November were almost half what they were in October and the previous six months.

The European currency showed strength against the US dollar during early deals on Wednesday. At about 4:20 am ET, the euro-dollar pair reached 1.4000, up from yesterday's close of 1.3927. The next upside target level for the pair is seen at 1.413.

Investors now look forward to the New York session, in which the US durable goods orders, personal income and spending reports-all for the month of November and the weekly jobless claims report have been slated for release.

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