Euro Falls Then Attempts to Rally on Christmas Eve

The  euro today fell against the  US dollar amid thin holiday trading conditions ahead of  tomorrow’s Christmas holiday celebrations. The  EUR/USD currency pair’s performance was not influenced by  any significant fundamental news but was primarily driven by  investor sentiment.
The  EUR/USD currency pair today fell from an  opening high of  1.1093 in  the  Asian session to  a  low of  1.1069 in  the  mid-European session before recovering some of  its losses.
The  currency pair’s decline was primarily driven by  the  resurgent greenback as  tracked by  the  US Dollar Index, which hit a  high of  97.79. The  pair failed to  capitalize on  yesterday’s rally as  the  greenback rallied higher driven by  the  risk-off market sentiment. Investors seemed to  prefer the  dollar ahead of  tomorrow’s Christmas holiday as  a  hedge against the  thin liquidity witnessed across the  global financial markets. The  pair’s performance was also affected by  investor fears about the  resumption of  US-China trade hostilities amid lingering doubts about the  signing of  the  phase one trade deal. Chinese officials have expressed concerns about President Donald Tump‘s commitment to  the  recently agreed phase one trade deal.
Investors appeared to  forget the  downbeat US durable goods orders report for  November released by  the  Census Bureau as  they bought the  US dollar. The  greenback also benefited from the  flight to  safety trade, given the  low trading volumes.
The  currency pair’s performance over Christmas and  boxing day is likely to  be influenced by  trade headlines and  geopolitical events.
The  EUR/USD currency pair was trading at  1.1085 as  at  15:26 GMT, having rallied from a  low of  1.1069. The  EUR/JPY currency pair was trading at  121.18, having fallen from a  high of  121.37.

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