2008.12.3106:37:00UTC+00Euro Declines Against Majors

The Euro showed weakness against its major counterparts in early trading on Wednesday.

During early deals on Wednesday, the euro slipped to 1.4041 against the dollar. The immediate support level for the European currency is seen at 1.392. The euro-dollar pair was worth 1.4072 at Tuesday's close.

The euro, which closed yesterday's trading at 127.17 against the yen and 0.9764 against the pound dropped to 126.70 and 0.9653, respectively in early deals on Wednesday. The next downside target level for the euro-yen pair is seen at 123.8 and the euro-pound pair at 0.962.

UK housing affordability improved considerably on easing house prices, a report from HBOS showed today. House prices to earnings ratio fell to its lowest level in five years. The ratio of house prices to average earnings stood at 4.56 in November. The ratio declined from a peak of 5.84 recorded in the prior year.

Martin Ellis, chief economist at HBOS said there has been a marked improvement in housing affordability in many parts of the U.K. First-time buyers, in particular, are benefiting, especially outside the south of England and the Midlands, Ellis added.

In early deals on Wednesday, the euro declined to 1.4858 against the Swiss franc. This may be compared to Tuesday's New York session close of 1.4910. If the euro-franc pair moves down further, it may test support around the 1.477 level.

Investors now look forward to the New York session, in which the US Labor Department is due to release its customary weekly jobless claims report for the week ended December 27th at 8:30 am ET.

Jobless claims rose 30,000 to 586,000 in the week ended December 20th from an upwardly revised figure of 556,000 for the previous week. Economists had expected jobless claims to edge up to 558,000 from the 554,000 originally reported for the previous week.

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