EUR/USD Pair Drops From 2-Week Highs Ahead of FOMC Rate Decision

The EUR/USD currency pair today dropped from yesterday’s 2-week highs as  investors looked past the  results of  the  US midterm elections triggering a  slight recovery by  the  greenback. The pair’s performance was largely driven by  positive investor sentiment towards the  greenback, which kept the  pair trading in  a  subdued range.
The  EUR/USD currency pair today traded in  a  range between a  high of  1.1445 and  a  low of  1.1404 as  investors waited for  the  FOMC rate decision.
The  currency pair was trading in  a  consolidative range in  the  Asian session before heading lower in the  early European session. The  release of  the  German trade balance data for  September by  the  Federal Statistical Office in  the  early European session also contributed to  the  pair’s decline. The  trade balance came in  at  â‚¬17.6 billion, which was lower than the  expected €18 billion print. The  European Central Bank also published its latest economic bulletin, which did not lift the  pair as  it extended its losses. Italy’s debt burden and  its standoff with the  European Union regarding its budget also weighed on  the  currency pair.
The  release of  the  US initial jobless claims data by  the  Department of  Labor in  the  early American session had a  muted impact on  the  currency pair despite meeting consensus estimates. The  positive tone around US Treasury yields also affected the  pair’s performance.
The  currency pair’s short-term performance is likely to  be affected by  the  FOMC interest rate decision scheduled for  19:00 GMT.
The  EUR/USD currency pair was trading at  1.1439 as  at  15:20 GMT having risen from a  low of  1.1404. The  EUR/JPY currency pair was trading at  130.02 having rallied from a  low of  129.67.

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