Euro Falls to 7-Day Lows on Depressed Market Risk Sentiment

The  euro today fell to  new weekly lows against the  US dollar as  the  risk-off market sentiment persisted after Iran attacked US bases in  Iraq. The  EUR/USD currency pair’s decline was accelerated further by  the  release of  weak data from the  euro area earlier today.
The  EUR/USD currency pair today fell from an  Asian session high of  1.1168 to  a  low of  1.1109 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  tensions between Iran and  the  US escalated after Iran attacked American military bases in  Iraq. However, the  US confirmed that there were no fatalities from the  attacks. The  release of  the  German factory orders for  November by  the  Federal Statistical Office also contributed to  the  pair’s decline. The  factory orders contracted by  6.5% versus the  expected 5.5% decline. The  release of  the  disappointing eurozone business climate index for  December by  the  European Commission also drove the  pair lower. The  weak French consumer confidence print released by  Insee also contributed to  the  pair’s decline. The  upbeat eurozone economic sentiment indicator and  the  consumer confidence print could not reverse the  pair’s losses.
The  pair’s decline paused briefly after the  release of  the  upbeat US ADP employment change report for  December. President Donald Trump’s speech later in  the  session diffused the  Iranian tensions as  he suggested negotiations with Iran instead of  war.
The  currency pair’s future performance is likely to  be affected by  geopolitical events and  tomorrow’s German trade balance report.
The  EUR/USD currency pair was trading at  1.1114 as  at  18:30 GMT, having dropped from a  high of  1.1168. The  EUR/JPY currency pair was trading at  121.30, having rallied from a  low of  120.18.

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