Euro Drops and Trades Flat on Weak German Investor Sentiment

The  euro today has been alternating between gains and  losses against the  US dollar from the  start of  the  session due to  the  risk-off sentiment in  the  markets. The  EUR/USD currency pair dipped to  new daily lows after the  release of  the  German ZEW survey data, whose prints came in  way below expectations.
The  EUR/USD currency pair today traded in  a  range marked by  a  high of  1.1598 and  a  low of  1.1564, but was trading flat at  the  time of  writing.
The  currency pair headed lower at  the  start of  today’s session largely due to  the  risk-off market sentiment occasioned by  the  tensions between the  USA, Turkey and  Saudi Arabia due to  the  killing of  Jamal Khashoggi. The  pair rallied higher in  the  early European session as  the  markets risk appetite improved, but this did not last. The  release of  the  German ZEW survey data shortly thereafter dragged the  pair lower as  the  survey data indicated that current conditions in  October missed expectations by  coming in  at  70.1 versus the  expected 74.4 print.
The  ZEW survey expectations also missed consensus estimates by  a  large margin by  coming in  at  -24.7 versus the  expected -12 print. The  eurozone ZEW survey of  economic sentiment also disappointed by  coming in  at  -19.4 versus the  previous figure of  -7.2. The  eurozone’s August trade surplus released by  Eurostat dropped to  â‚¬11.7 billion.
The  release of  the  US industrial production data and  manufacturing production data for September is likely to  influence the  pair’s performance.
The  EUR/USD currency pair was trading at  1.1587 as  at  12:02 GMT having recovered from a  low of  1.1564. The  EUR/JPY currency pair was trading at  129.81 having risen from a  low of  129.53.

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