Euro Declines As European Stocks Slip On Growth Concerns

The euro slipped against most major rivals in European deals on Monday, as European stocks fell amid falling oil prices, worries over weakness of the global economy and uncertainty over the Federal Reserve's monetary policy.

Survey from Sentix showing deteriorating investor sentiment in the euro area also dampened the investor mood.

The investor sentiment index dropped more than expected to 6 in February from 9.6 in January. Economists forecast the index to ease to 8.8.

The reading was the lowest since early 2015.

German bund yields turned negative, with yields on 2-year note hitting a new record low of minus 0.51 percent, while the 7-year yield fell 4 basis points to minus 0.135 percent.

The currency showed mixed performance in Asian deals. While the euro rose against the yen and the franc, it declined against the pound. Against the greenback, it held steady.

The single currency weakened to an 11-day low of 129.06 against the yen, from a high of 130.90 hit at 1:45 am ET. The euro is likely to challenge support around the 128.00 zone.

Data from the Ministry of Finance showed that Japan registered a current account surplus of 960.7 billion yen in December, up 325.2 percent on year.

The headline figure was shy of expectations for 1,051.7 billion yen and down from 1,143.5 billion in November.

The euro, having advanced to 1.1184 versus the greenback, reversed direction and reached a 4-day low of 1.1087. If the euro-greenback pair extends slide, 1.10 is possibly seen as its next support level.

The euro eased to 1.1043 against the franc, 1.5674 against the aussie, 1.6760 against the kiwi and 1.5455 against the loonie, from its early highs of 1.1095 and 1.5785, 6-day high of 1.6895 and a near 2-week high of 1.5549, respectively. The next possible support for the euro is seen around 1.095 against the franc, 1.56 against the aussie, 1.66 against the kiwi and 1.56 against the loonie.

Looking ahead, U.S. labor market conditions index for January are set to be published shortly.

At 12:05 pm ET, Bank of Canada Deputy Governor Timothy Lane will deliver a speech titled "Monetary Policy and Financial Stability—Using the Right Tools" at the HEC Montreal.