Euro Down As German Business Sentiment Worsens

(RTTNews) - The euro dropped against its major counterparts in the European session on Tuesday, as German business confidence deteriorated for the third straight month in July, triggering concerns about economic recovery in Europe's largest economy.

Survey from the ifo institute showed that the business climate index fell to 87.3 in July from 88.6 in the previous month. The expected score was 88.0.

The current situation indicator posted 91.3 in July compared to 93.7 a month ago. The score was also below economists' forecast of 93.0.

The expectations index dropped moderately to 83.5 from 83.8 in June. The reading was forecast to ease to 83.4.

Investors also awaited cues from this week's central bank meetings in the U.S., Europe and Japan and a slew of corporate earnings from tech giants, including Google parent Alphabet, Microsoft and Meta.

The euro was down against the franc, at 0.9597. Should the currency slides further, 0.94 is likely seen as its next downside target level.

The euro fell to near 2-week lows of 1.1039 against the greenback and 1.6313 against the aussie, off its early highs of 1.1086 and 1.6450, respectively. The next possible support for the currency is seen around 1.07 against the greenback and 1.57 against the aussie.

The euro dropped to a 1-week low of 0.8597 against the pound and a 4-day low of 156.09 against the yen, from its early highs of 0.8636 and 156.89, respectively. The currency may locate support around 0.84 against the pound and 149.00 against the yen.

The euro weakened to a 1-week low of 1.7779 against the kiwi and a fresh 2-week low of 1.4547 against the loonie, down from its prior highs of 1.7873 and 1.4585, respectively. The currency is likely to face support around 1.74 against the kiwi and 1.44 against the loonie.

U.S. house price index for May and consumer confidence for July are slated for release in the New York session.