* Weak eurozone growth outlook weighs on euro
* Loose monetary policy also weighs on single currency
(New throughout, updates trading and comments to U.S. market open, changes byline and dateline)
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 eurozone 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 eurozone 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 eurozone," 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 $1.0929.
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= was the other big loser 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 pound weakened to a two-week low of $1.2269 on Friday as his comments raised expectations that the
next move from the central bank could be a rate cut. The currency later rose back to $1.2318.
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Currency bid prices at 9:56AM (1356 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0929 $1.0921 +0.07% -4.70% +1.0948 +1.0906
Dollar/Yen JPY= 108.0600 107.8200 +0.22% -2.00% +108.1600 +107.6700
Euro/Yen EURJPY= 118.13 117.74 +0.33% -6.41% +118.2900 +117.4700
Dollar/Swiss CHF= 0.9929 0.9935 -0.06% +1.17% +0.9948 +0.9915
Sterling/Dollar GBP= 1.2318 1.2322 -0.03% -3.44% +1.2336 +1.2272
Dollar/Canadian CAD= 1.3246 1.3268 -0.17% -2.86% +1.3278 +1.3245
Australian/Doll AUD= 0.6766 0.6748 +0.27% -4.01% +0.6768 +0.6744
ar
Euro/Swiss EURCHF= 1.0851 1.0850 +0.01% -3.58% +1.0863 +1.0840
Euro/Sterling EURGBP= 0.8870 0.8861 +0.10% -1.27% +0.8896 +0.8847
NZ NZD= 0.6303 0.6297 +0.10% -6.16% +0.6304 +0.6280
Dollar/Dollar
Dollar/Norway NOK= 9.0848 9.0797 +0.06% +5.16% +9.1007 +9.0657
Euro/Norway EURNOK= 9.9325 9.9178 +0.15% +0.27% +9.9412 +9.9102
Dollar/Sweden SEK= 9.8141 9.7635 +0.59% +9.49% +9.8155 +9.7531
Euro/Sweden EURSEK= 10.7271 10.6642 +0.59% +4.52% +10.7296 +10.6524