Euro Falls In Cautious Trade

The euro slipped against its most major counterparts in the European session on Tuesday, amid a rise in COVID-19 infections in Spain and the U.K. and a tightening of restrictions in France.

France announced restrictions on large gatherings and ordered citizens to work from home for at least three days a week from January 3.

Indoor gatherings of more than 2,000 people and outdoor gatherings of more than 5,000 people will be prohibited.

The nightclubs will continue to be closed and cafés and bars will be permitted to provide only table service.

In Spain, the 14-day incidence rate jumped to 1,206 cases per 100,000 people after the Christmas weekend.

The euro weakened to a 1-week low of 1.0380 against the franc and a 5-day low of 0.8420 against the pound, after rising to 1.0395 and 0.8433, respectively in early deals. The next possible support for the euro is seen around 1.02 against the franc and 0.82 against the pound.

The euro retreated to 129.92 against the yen, from a 1-1/2-month high of 130.23 seen at 7:45 pm ET. The euro may locate support around the 127.5 level.

The euro declined to a 5-day low of 1.5621 against the aussie, following a high of 1.5662 set at 6:15 pm ET. The euro is seen finding support around the 1.52 level.

In contrast, the euro bounced off to 1.1333 against the greenback, 1.6640 against the kiwi and 1.4506 against the loonie, following its previous lows of 1.1316, 1.6602 and 1.4469, respectively. If the euro rises further, 1.16, 1.68 and 1.48 are likely seen as its next resistance levels against the greenback, the kiwi and the loonie, respectively.

Looking ahead, U.S. FHFA's house price index and S&P/Case-Shiller home price index for October will be out in the New York session.