CANBERA (dpa-AFX) - The euro slipped against other major currencies on Friday, as a meeting of finance ministers from the Group of Twenty (G20) nations commenced in Moscow. The two-day meeting attended by finance ministers and central bank chiefs will put forth currency exchange rate issues for discussion.
European Central Bank policymaker Jens Weidmann said that the central bank won't slash rates solely to manipulate the euro and the currency's exchange rate gain reflects improved confidence and outlook.
The euro was under pressure yesterday also as weak growth data out of Eurozone dimmed hopes for a recovery in early 2013.
Eurozone's trade surplus declined in December from a month earlier, the latest figures published by Eurostat revealed today. The surplus fell to EUR 11.7 billion in December from a revised EUR 13 billion in the previous month. Economists expected the surplus to fall to EUR 13.1 billion from November's originally estimated EUR 13.7 billion.
The euro fell to more than a 3-week low of 1.3313 against the greenback, down from an early high of 1.3394. The euro may find next support level at 1.325.
Against the yen, the euro reached 122.92 for the first time since January 30. If the euro extends slide, it may break 122.00 level. At yesterday's close, the pair was worth 124.12.
Japan's industrial production grew 2.4 percent month-on-month in December, down from the 2.5 percent increase initially estimated, final data from the Ministry of Economy, Trade and Industry showed today.
Compared to the same period of last year, output was down 7.9 percent.
The 17-nation currency dropped to 1.2293 against the franc reversing from an early high of 1.2334. The euro may face next downside target around 1.22 level.
The euro that fell to a 2-day low of 0.8577 against the pound recovered after U.K. retail sales. The pair closed yesterday's deals at 0.8626.
U.K. retail sales including auto fuel fell unexpectedly by 0.6 percent in January from the prior month, the Office for National Statistics said. Economists had forecast a 0.5 percent rise, following a 0.3 percent drop in December.
Likewise, retail sales excluding fuel dropped 0.5 percent month-on-month, after easing 0.4 percent in November. The decline was in contrast to a 0.5 percent increase forecast by economists.
Against the aussie, loonie and the kiwi, the euro fell to more than a 2-week low of 1.2853, fresh 3-week low of 1.3334 and a 5-week low of 1.5649, respectively. The euro may seek next support level around 1.28 against the aussie, 1.33 against the loonie and 1.56 against the kiwi.
The U.S. empire manufacturing for February, industrial production for January and the results of the University of Michigan's consumer confidence survey will be released in the North American session.
Canada's existing home sales for January and manufacturing shipments for December are also on tap in the New York session.
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