The euro today declined against the US dollar on the back of positive US macro data including the durable goods orders and the weak MBA mortgage applications data. The euro was weighed down by the political uncertainties in Germany even as Angela Merkel is expected to form a three-way coalition government.
The EUR/USD currency pair opened today’s session on a downtrend, but declined further after the release to record a decline of over 75 points from its daily highs. The pair had recovered some of its losses at the time of writing.
The EUR/USD currency pair has been on a downtrend since the beginning of this week having lost significant ground during this period. The results of Sunday’s German federal election played a major role in this decline even as the far-right party AfD won got votes to get seats in the Bundestag after 60 years. Weak releases from the Eurozone have also contributed to the euro’s decline.
The US dollar extended its gains from yesterday’s session after Janet Yellen, the Fed Chair, spoke in favor of another rate hike at the FOMC December meeting. The release of the positive US durable goods orders data by the Census Bureau also boosted the US dollar. The weak pending home sales for August could not derail the greenback as tracked by the US Dollar Index, which hit a high of 93.61.
The currency pair’s future performance is likely to be affected by President Donald Trump‘s speech later today and the release of German CPI data tomorrow.
The EUR/USD currency pair was trading at 1.1763 as at 16:40 GMT having recovered from a low of 1.1717. The EUR/JPY currency pair was trading at 132.37 having dropped from a high of 132.74.
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