* Weak eurozone growth outlook weighs on euro
* Loose monetary policy also weighs on single currency
(Adds Chinese yuan, Bloomberg report, updates prices)
By Karen Brettell
NEW YORK, Sept 27 (Reuters) - The euro fell to more than two-year lows against the U.S. dollar on
Friday as a weak growth outlook weighed on the single currency, though it rebounded after testing
technical support levels.
Dismal business activity data from the euro area, especially powerhouse economy Germany, has pushed
European bond yields lower across the board this week, with further pressure coming from concern over
economic weakness in Britain. GVD/EUR
"We have had a steady drip of weak data from the euro zone this week and that is highlighting the
differences between the U.S. and Europe," said Commerzbank analyst Thu Lan Nguyen, adding that the United
States is still showing signs of strength.
Negative interest rates, quantitative easing and other attempts by the European Central Bank (ECB) to
stimulate the euro zone economy are also making investment in U.S. government debt more attractive and
boosting the greenback against the euro.
“The more recent drift lower in the euro seems to be perpetuated by the continued grind lower in
growth expectations, and certainly in realized growth in the euro zone," said Mazen Issa, senior FX
strategist at TD Securities in New York.
Further ECB stimulus, negative rates and bond buying are also exerting a pull on the euro, he added.
The euro EUR= dropped as low as $1.0903, its lowest since May 2017, in overnight trading before
rising back to $1.0938.
The single currency has technical support around $1.0925, which could provide a floor for the time
being.
“We did break below that briefly yesterday, but that was late trading in New York, and so I think
there is going to be quite a bit of hesitance to try to push it below that on a sustainable basis,” Issa
said, noting that quarter-end rebalancing is also limiting risk taking.
Sterling GBP= also fell weakened to a two-week low of $1.2269 after Bank of England policymaker
Michael Saunders hinted at looser monetary policy if Brexit uncertainty remained prolonged against a
backdrop of disappointing global growth. The currency later rose back to $1.2291.
The Chinese yuan weakened after Bloomberg reported that White House officials are discussing ways to
limit U.S. portfolio flows into China. The greenback gained %0.31 on the day to 7.1451 yuan CNH= .
========================================================
Currency bid prices at 2:31PM (1831 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0938 $1.0921 +0.16% -4.63% +1.0958 +1.0906
Dollar/Yen JPY= 107.8800 107.8200 +0.06% -2.16% +108.1700 +107.6700
Euro/Yen EURJPY= 118.00 117.74 +0.22% -6.51% +118.4600 +117.4700
Dollar/Swiss CHF= 0.9902 0.9935 -0.33% +0.90% +0.9948 +0.9898
Sterling/Dollar GBP= 1.2291 1.2322 -0.25% -3.65% +1.2336 +1.2272
Dollar/Canadian CAD= 1.3252 1.3268 -0.12% -2.85% +1.3278 +1.3213
Australian/Doll AUD= 0.6759 0.6748 +0.16% -4.11% +0.6779 +0.6744
Euro/Swiss EURCHF= 1.0831 1.0850 -0.18% -3.76% +1.0865 +1.0833
Euro/Sterling EURGBP= 0.8898 0.8861 +0.42% -0.97% +0.8903 +0.8847
NZ NZD= 0.6288 0.6297 -0.14% -6.39% +0.6309 +0.6280
Dollar/Dollar
Dollar/Norway NOK= 9.0842 9.0797 +0.05% +5.16% +9.1007 +9.0638
Euro/Norway EURNOK= 9.9345 9.9178 +0.17% +0.31% +9.9500 +9.9102
Dollar/Sweden SEK= 9.7976 9.7635 +0.52% +9.30% +9.8155 +9.7531
Euro/Sweden EURSEK= 10.7199 10.6642 +0.52% +4.44% +10.7351 +10.6524