Euro Trades Sideways Despite In-Line Eurozone Inflation Data

The  euro today traded in  a  tight range against the  US dollar amid a  market that was largely stable and  lacked volatility. The  release of  upbeat data from the  US docket in  the  early American session saw the  EUR/USD currency pair come under intense selling pressure.
The  EUR/USD currency pair today traded in  a  range marked by  a  high of  1.1407 and  a  low of  1.1370 and  was still within this range at  the  time of  writing.
The  currency pair was in  a  downtrend during the  Asian session where it hit a  new weekly low. The  pair then recovered as  European markets opened, but investor sentiment towards the  euro remained neutral given the  recent weak macro releases from across the  eurozone. The  release of  the  eurozone CPI data for  December early in  the  European session had a  muted impact on  the  currency pair. According to  Eurostat, the  headline CPI print remained flat translating into an  annualized 1%, which was in-line with expectations, while the  core CPI print also met expectations. The  eurozone construction output declined by  0.1% in  November as  compared to  October.
The  release of  the  upbeat US jobless claims data by  the  Department of  Labor also triggered a  brief decline by  the  pair. The  jobless claims came in  at  213,000 versus the  expected 220,000, while the  Philadelphia Fed manufacturing survey also beat expectations.
The  pair’s future performance is likely to  be affected by  tomorrow’s eurozone current account data and the US consumer sentiment data.
The  EUR/USD currency pair was trading at  1.1375 as  at  15:46 GMT having fallen from a  high of  1.1407. The  EUR/JPY currency pair was trading at  123.92 having dropped from a  high of  124.31.

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