2010.08.3106:24:00UTC+00Euro Mixed Against Majors

In early European deals on Tuesday, the euro showed mixed trading against its major counterparts. While the euro tumbled to a new record low against the franc, it strengthened to a 4-day high against the pound. Against the dollar and the yen, the euro recovered from an Asian session's 6-day low during this time.

European stocks fell today on concerns about the pace of the global economic recovery.

Thus far, Germany's DAX fell 0.8%, France's CAC 40 index plunged 1.1% and U.K.'s FTSE 10 index lost 0.9%.

Eurozone annual consumer price inflation eased in August, a preliminary report by the Eurostat showed today. The consumer price index rose 1.6% year-on-year in August, but slower than a 1.7% rise in the previous month. Annual inflation came in line with economists' expectations. The European Central Bank targets inflation rates of 'below, but close to, 2%' over the medium term.

Another report showed that the euro area's unemployment rate remained unchanged at 10% in July, in line with expectations. Eurostat said a total of 15.8 million people were registered unemployed in the eurozone, with the number of unemployed decreasing by 8,000 compared to the previous month.

After a brief slide, the euro rose against the pound in Asian deals on Tuesday and extended its gains in early European session. The euro-pound pair that closed yesterday's trading at 0.8192 is now trading at a 4-day high of 0.8226. The next upside target level for the euro is seen at 0.824.

The euro declined against the Swiss franc during early deals on Tuesday. The euro-franc pair is currently trading at a new record low of 1.2905. At yesterday's close, the euro-franc pair was quoted at 1.2993.

The euro that plunged to a 6-day low of 106.20 against the yen at 2:40 am ET Tuesday strengthened thereafter. As of now, the euro-yen pair is worth 106.86 with 108.0 seen as the next upside target level. The pair closed yesterday's trading at 107.16.

The euro dropped to a 6-day low of 1.2627 against the dollar before bouncing back at 3:05 am ET Tuesday. The euro-dollar is currently worth 1.2685, up from yesterday's close of 1.2663. If the euro climbs further, it may likely target the 1.278 level.

Traders are now likely to focus on the New York session, in which the U.S. S&P/Case-Shiller home price index for the second quarter, consumer confidence and the Chicago PMI for August are expected.

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