Euro Falls on Risk-Off Mood, Ignores German CPI Data, Later Recovers

The  euro today fell against the  US dollar driven by  the  risk-off sentiment that ensued after the  US killed a  top Iranian general earlier today spooking investors. The EUR/USD currency pair ignored the release of upbeat German inflation data but later recovered as the greenback lost momentum in the American session.
The  EUR/USD currency pair today fell from an  opening high of  1.1178 in  the  Asian session to  a  low of  1.1125 in  the  mid-European session but had recovered most of  its losses at  the  time of  writing.
The  currency pair headed lower at  the  start of  today’s session driven by  investor sentiment before news broke of  the  US attack, which sent it lower. The  release of  the  German unemployment change report for  December by  the  Federal Statistical Office did not help the  pair. The  number of  unemployed persons rose to  8,000 missing expectations set at  2,000 persons, which dragged the  euro lower. The  release of  the  mixed eurozone money supply report for  November by  the  European Central Bank also contributed to  the  pair’s woes.
The  pair ignored the  release of  the  upbeat German consumer price index report for  December, which came in  at  an  annualized 1.5% beating expectations by  0.1%. The  pair recovered shortly afterwards following the  release of  the  disappointing US ISM Manufacturing PMI report for  December, which was recorded at  47.2 versus the  expected 49.0 print.
The  currency pair’s future performance is likely to  be affected by  the  release of  the  FOMC minutes scheduled for  19:00 GMT.
The  EUR/USD currency pair was trading at  1.1163 as  at  15:39 GMT having recovered from a  low of  1.1125. The  EUR/JPY currency pair was trading at  120.61 having dropped from a  high of  121.29.

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