Euro Trades at 13-Month Lows on High Market Volatility

The  euro today traded at  13-month lows as  it was driven lower by  market volatility in  emerging markets led by  Turkey resulting in  a  strong US dollar. The  EUR/USD currency pair traded lower due to  the  selloff in  emerging market currencies, which increased the  demand for  the  greenback at  the  expense of  its peers including the  euro.
The  EUR/USD currency pair hit a  low of  1.1307 in  the  American session, a  figure last witnessed in  June 2017, having dropped from a  high of  1.1347.
The  lack of  any major releases from the  European docket today meant that the  euro was highly susceptible to  market sentiment. The  ongoing crisis in  Turkey continued to  dominate market sentiment as  investors fled the  riskier currencies including the  euro in  favor of  the  US dollar. Investor sentiment was further dampened by  the  existing trade tension between the  US and  its major trading partners including China and  the  European Union. The  selloff in  other emerging market currencies such as  the  South African rand, the  Russian ruble and  the  Mexican peso also drove the  currency pair lower.
The  currency pair rallied higher rallied slightly after the  release of  upbeat US advance retail sales figures by  the Census Bureau before heading lower. The  positive non-farm productivity report and  Empire state manufacturing data both had a  muted impact on  the  currency pair.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s Eurozone trade balance data and  the  US initial jobless claims data.
The  EUR/USD currency pair was trading at  1.1312 as  at  13:06 GMT having dropped from a  high of  1.1347. The  EUR/JPY currency pair was trading at  125.41 having declined from a  high of  126.38.

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