Euro Falls From Highs Triggered by Dovish Fed as US Dollar Rebounds

The  euro today rallied higher against the  US dollar in  the  early Asian session following yesterday’s dovish FOMC minutes and  Fed comments. The  single currency soon headed lower as  the  US dollar staged a  rebound boosted by  the  risk averse market sentiment as  the  optimism around the  US-China trade talks faded.
The  EUR/USD currency pair today dropped from an  Asian session high of  1.1570 to  hit a  low of  1.1516 in  the  American session.
The  currency pair rallied slightly on  the  back of  yesterday’s dovish FOMC minutes, which confirmed the  Fed’s bearish stance. The  pair quickly headed lower as  the  US dollar staged a  comeback and  rallied higher as  tracked by  the  US Dollar Index, which hit a  high of  95.42. The  pair’s decline was further extended by  the  release of  the  weak French industrial output data for  November by  Insee. The  upbeat Italian retail sales data released by  Istat came in  above expectations, but could not lift the  currency pair. The  release of  the  latest European Central Bank account of  monetary policy meeting confirmed the  bank’s dovish outlook and  had a  muted impact on  the  pair.
The  release of  the  US initial jobless claims data by  the  Department of  Labor, which came in  below expectations, also contributed to  the  currency pair’s decline.However, the  continuing claims print was higher than expected.
The  currency pair’s short-term performance is likely to  be influenced by  the  Fed Chairman Jerome Powell‘s speech scheduled for  17:00 GMT today.
The  EUR/USD currency pair was trading at  1.1519 as  at  15:22 GMT having dropped from a  high of  1.1570. The  EUR/JPY currency pair was trading at  124.54 having fallen from a  high of  125.04.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.