Euro Falls on Mixed German Data Amid Depressed Market Sentiment

The  euro today fell against the  US dollar following mixed releases from Germany led by  the  weak import price index data among others. The  EUR/USD currency pair gave up yesterday’s gains that were triggered by  positive investor sentiment towards the  single currency based on  hopes for  a  Brexit deal.
The  EUR/USD currency pair today dropped from a  high of  1.1717 in  the  early European session to  a  low of  1.1657 in  the  American session.
The  currency pair headed lower at  the  start of  today’s session as  market sentiment shifted against the  single currency. The  release of  the  German import price index by  the  Federal Statistical Office earlier today had a  slightly positive impact on  the  currency pair despite the  print missing expectations. The  German unemployment data released shortly thereafter had a  muted impact on  the  pair despite meeting expectations. German unemployment declined by  8,000, while the  jobless claims rate came in  at  5.2%. The  German consumer price index data also met expectations by  coming in  at  a  monthly 0.1% and  an  annualized 2.0%.
Other releases such as  the  eurozone business climate indicator released by  the  European Commission, which came in  below expectations at  1.22 also contributed to  the  pair’s decline. Several releases from the  US docket such as  the  personal consumption expenditure report released by  the  Bureau of  Economic Analysis also drove the  pair lower.
The  currency pair’s future performance is likely to  be affected by  market sentiment and  tomorrow’s eurozone CPI data and  US University of Michigan consumer confidence survey.
The  EUR/USD currency pair was trading at  1.1661 as  at  14:11 GMT having dropped from a  high of  1.1717. The  EUR/JPY currency pair was trading at  129.79 having declined from a  high of  130.86.

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