Euro Falls Despite Upbeat German IFO and Eurozone CPI Data

The  euro today fell against the  US dollar in  what could only be attributed to  technical factors including major resistance levels posed by  the  200-day MA. The  EUR/USD currency pair kept falling despite the  release of  upbeat German IFO survey data and  inflation data from the  eurozone driven by  a  much stronger dollar.
The  EUR/USD currency pair today fell from an  opening high of  1.1151 to  a  low of  1.1110 in  the  American session and  was trading near these lows at  the  time of  writing.
The currency pair fell from the start of today’s session as sellers overtook buyers and kept driving it lower. The release of the disappointing German producer price index report for  November by  the  Federal Statistical Office contributed to  the  pair’s woes. The  country’s PPI remained flat in  November missing expectations of  a  0.1% expansion. The  release of  the  German IFO business climate index two hours boosted the  pair halting its decline as  the  print came in  at  96.3 beating expectations set at  95.5. The  IFO current assessment and  expectations prints also beat analysts’ estimates. The  release of  the  in-line eurozone consumer price index data for  November by  Eurostat boosted the pair briefly; both the headline and core CPI prints met analysts estimates.
The  fibre’s decline was further accelerated by  the  strong greenback as  the  US Dollar Index hit a  high of  97.48. The  dollar appeared immune to  the  ongoing impeachment proceedings against President Donald Trump.
The currency pair’s future performance is likely to be affected by US dollar dynamics, and geopolitical events amid tomorrow’s empty European dockets.
The  EUR/USD currency pair was trading at  1.1115 as  at  17:45 GMT having fallen from a  high of  1.1151. The  EUR/JPY currency pair was trading at  121.82 having dropped from a  high of  122.13.

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