21.06.201610:16:00UTC+00Euro Falls After ECB Draghi Says Bank Ready To Cope With "Brexit" Impact

The euro slipped against its major rivals in early New York trading on Tuesday, after the European Central Bank President Mario Draghi hinted that risks emanating from a potential Brexit is challenging and the bank has taken necessary measures to overcome the impact of a possible "Brexit" on EU referendum.

Speaking to the European Parliamentary committee in Brussels, Draghi noted that the bloc's uncertainty remained high and downside risks were challenging due to the continued fragile state of the global economy and geopolitical developments.

"We will closely monitor the evolution of the outlook for price stability," he said.

"We stand ready to act by using all the instruments available within our mandate, if necessary, to achieve our objective. In particular, the ECB is ready for all contingencies following the UK's EU referendum," he added.

In economic news, survey results from the Centre for European Economic Research or ZEW showed that Germany's economic confidence strengthened sharply in June.

The economic sentiment index rose unexpectedly to 19.2 from 6.4 in the prior month. It was forecast to fall to 4.8 points in June.

The currency has been trading in a negative territory in European deals.

Extending early slide, the euro declined to 1.5059 against the aussie, its weakest since May 3, from an early high of 1.5189. On the downside, 1.49 is likely seen as the next support level for the euro-aussie pair.

Data from the Australian Bureau of Statistics showed that Australia's house prices fell 0.2 percent on quarter in the first quarter of 2016.

That missed forecasts for an increase of 0.8 percent following the 0.2 percent gain in the previous three months.

The euro declined to 1.5765 against NZ dollar, a level not seen since June 2015, following an advance to 1.5956 at 1:30 am ET. Continuation of the euro's downtrend may lead it to a support around the 1.55 area.

Reversing from an early high of 1.4516 against the loonie, the euro slipped to a 6-day low of 1.4415. The euro is seen finding support around the 1.42 region.

The single currency slipped to a 3-week low of 0.7656 against pound, off its early high of 0.7744. The next possible downside target for the euro-pound pair may be located around the 0.75 zone.

Data from the Office for National Statistics showed that the U.K. budget deficit narrowed in May.

Public sector net borrowing decreased by GBP 0.4 billion from last year to GBP 9.7 billion in May. Nonetheless, it was above the expected level of GBP 9.4 billion.

The common currency fell to 4-day lows of 1.0824 versus the franc and 117.31 against the yen, reversing from its previous highs of 1.0904 and 118.68, respectively. If the euro continues slide, it may find support around 1.06 against the franc and 116.00 against the yen.

Looking ahead, at 2:30 pm ET, Federal Reserve Governor Jerome Powell will deliver opening remarks at the Round table of Alternative Reference Rates Committee in New York.