The euro declined against major currencies on November 22, 2024, as traders anticipated potential interest rate cuts by the European Central Bank (ECB). This speculation follows data indicating a contraction in business activity across Germany and the Eurozone.
According to S&P Global, the euro area's private sector fell into contraction, with the composite output index dropping to 48.1 in November, down from 50.0 in October. Germany's private sector also contracted, with the HCOB composite output index falling to 47.3 from 48.6, marking the fastest decline since February.
France experienced significant contraction as well, with its composite index falling to 44.8. The contraction in business activity has raised concerns among ECB officials regarding sluggish growth, exacerbated by ongoing geopolitical tensions.
In the European trading session, the euro reached a nearly 10-year low of 0.9206 against the Swiss franc, a two-year low of 1.0333 against the U.S. dollar, and a two-month low of 159.91 against the yen. The euro is projected to find support around 0.90 against the franc, 1.02 against the dollar, and 158.00 against the yen.
Looking ahead, upcoming economic data releases include Canada’s new housing price index for October and U.S. PMI data for November, which may further influence market sentiment.