Euro Declines Against Resurgent US Dollar Despite Mixed US Data

The  euro today declined against a  resurgent US dollar in  the  wake of  the  intensifying trade spat between the  US and  China. The  EUR/USD currency pair headed lower in  the  late Asian session as  the  greenback rallied higher and  the  selling pressure increased during the  early European session.
The  EUR/USD currency pair today declined from a  high of  1.1619 in  the  Asian session to  a  low of  1.1575 in  the  early European session.
The  currency pair’s decline was largely triggered by  the  escalating trade tensions between the  US and  China, which dampened the  risk sentiment in  the  market and  boosted the  US dollar. The  pair was also dragged lower by  warnings from the  European Central Bank regarding the  growth outlook in  the  Eurozone and  globally given the  impact of  the  trade tensions. The  warnings were the  highlight of  the  latest monthly economic bulletin released by  the  ECB, which focused on  the  downside risks to  global trade and  economic growth.
The  greenback’s rally also contributed to  the  pair’s decline as  tracked by  the  US Dollar Index, which hit a  high of  95.35 earlier today. The  release of  the  upbeat initial jobless claims data by  the  Department of  Labor also dragged the  pair lower. The  weak US Producer Price Index also released today had a  muted impact on  the  pair.
The  currency pair’s future performance is likely to  be affected by  geopolitical events and  tomorrow’s US CPI data.
The  EUR/USD currency pair was trading at  1.1588 as  at  13:47 GMT having dropped from a  high of  1.1619. The  EUR/JPY currency pair was trading at  128.65 having declined from a  high of  129.00.

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