Euro Declines on Weak Eurozone Data, Later Rallies on Weak US Data

The  euro today fell from Asian session highs in  the  early European session following the  release of  mixed macro data from across the  euro area. The  EUR/USD currency pair later rallied higher in  the  mid-European session as  market risk sentiment improved before heading lower in  the  American session.
The  EUR/USD currency pair today traded between a  high of  1.1402 and  a  low of  1.1348, but was trading almost flat at  the  time of  writing.
The  currency pair’s initial rally could be attributed to  the  weaker US dollar, which was reeling from yesterday’s dovish comments by  the  Fed Chair, Jerome Powell. The  pair headed lower shortly after the  release of  the  French Q3 GDP data by  Insee, which came in  at  an  annualized 1.4%, missing expectations by  0.1%. The  pair extended its losses despite the  release of  the  upbeat German unemployment change data, which showed a  decline of  16,000 versus the  expected 10,000 jobs, beating expectations by  0.1%. The  positive eurozone economic sentiment indicator and  the  business climate indicator released later by the European Commission all had a  muted impact on  the  currency pair.
The  release of  the  weak German CPI data by  the  Federal Statistical Office triggered another decline in  the  pair. The  release of  weak US data such as  the  core PCE print for  October and  the  jobless claims data, which missed expectations triggered a  brief rally by  the  pair.
The  pair’s short-term performance is likely to  be influenced by  the  release of  the  FOMC minutes at  19:00 GMT.
The  EUR/USD currency pair was trading at  1.1383 as  at  16:26 GMT having rallied from a  low of  1.1348. The  EUR/JPY currency pair was trading at  129.07 having risen from a  low of  128.65.

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