Euro Declines on Weak Eurozone Inflation Data Amid Growing Fears

The  euro today declined against the  US dollar amid growing fears regarding the  risks posed by  emerging markets and  the  trade war being spearheaded by  the  USA. The  EUR/USD currency pair fell after the  release of  weak eurozone inflation figures and  the  Trump administration’s rejection of  the  EU’s offer on  auto tariffs.
The  EUR/USD currency pair today declined from a  high of  1.1689 to  a  low of  1.1642 due to  the  above factors.
The  currency pair’s decline was initially triggered by  Donald Trump‘s rejection of  the  new offer presented by  the  European Union Trade Commissioner Cecilia Malmstrom to  scrap auto tariffs. Trump stated that the  deal was not good enough and  that the  EU was just as  bad as  China. The  release of  the  German retail sales data by  the  Federal Statistical Office also contributed to  the  decline as  the  print came in  at  an  annualized 0.8%, which was lower than the  expected 1.3%. The  release of  the  eurozone unemployment rate by  Eurostat earlier today had a  muted impact on  the  currency pair despite the  print meeting consensus estimates set at  8.2%.
The  release of  the  eurozone consumer price index data for  August drove the  pair lower as  the  core CPI came in  at  1.0% versus the  expected 1.1%. The  headline CPI print came in  at  2.0% missing expectations by  0.1%.
The  currency pair’s short-term performance is likely to  be influenced by  the  release of  the  University of  Michigan consumer sentiment survey later today.
The  EUR/USD currency pair was trading at  1.1650 as  at  11:59 GMT having dropped from a  high of  1.1689. The  EUR/JPY currency pair was trading at  129.07 having declined from a  high of  129.84.

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