Euro Falls on Trade Headlines and US CPI Amid Empty European Dockets

The  euro today fell against the  US dollar driven by  a  lack of  macro releases from across the  euro area and  the  resurgent greenback. The  EUR/USD currency pair later rallied from its daily lows despite the  release of  mostly in-line US inflation data in  the  American session.
The  EUR/USD currency pair today fell from a  high of  1.1144 in  the  Asian session to  a  low of  1.1104 in  the  American session but had since recouped most of  its losses.
The currency pair rallied higher in the Asian session due to improved investor sentiment as markets await the signing of the  US-China trade deal tomorrow. However, it seems like investor risk appetite soured in  the  early European session leading to  the  pair’s decline as  analysts debated the  likelihood of  a  phase two deal once the  phase one deal is signed. The  pair’s decline was also attributed to  the  greenback’s rally as  tracked by  the  US Dollar Index, which hit a  high of  97.56 before falling to  its daily lows later.
The  pair hit its daily lows in  the  early American session following the  release of  the  in-line US consumer price index report for  December by  the  Bureau of  Labour Statistics. The  annualized CPI prints met expectations, while the  monthly prints missed expectations by  0.1%. The  pair later recovered after the  US dollar lost its appeal and  fell.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s multiple euro area and  US macro releases.
The EUR/USD currency pair was trading at 1.1131 as at 19:07 GMT, having recovered from a low of 1.1104. The EUR/JPY currency pair was trading at 122.40, having dropped from a high of 122.76.

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