Euro Struggles to Rally Amid Davos Forum and Coronavirus Threat

The  euro today struggled to  rally against the  US dollar as  the  World Economic Forum drags on  in  Davos, Switzerland. The  EUR/USD currency pair today fell to  new 2020 lows before recouping its losses as  investors grappled with the  emerging risk posed by  the  Coronavirus.
The  EUR/USD currency pair today fell to  a  low of  1.1075 before rallying to  a  high of  1.1095 and  was in  the  middle of  this range at  the  time of  writing.
The  currency pair struggled to  rally today despite the  positive comments from both the  US and  China regarding the  phase one trade deal and  the  upcoming phase two trade negotiations. Steven Mnuchin, the US Treasury Secretary, confirmed that the  US was very pleased with the  phase one trade deal from Davos. The  upbeat trade comments could not boost the  euro as  investors remained cautious in  the  face of  the  new coronavirus cases report in  Hong Kong and  the  US. The  release of  the  weak French business climate data for  January by  Insee also did not help the  pair. The  release of  the  mixed Italian industrial sales and  orders report for  November by  Istat also contributed to  the  pair’s woes.
President Donald Trump‘s harsh criticism of  the  US Federal Reserve‘s rate hikes in  the  past few years saw the  US Dollar Index drop to  a  low of  97.55, but the  euro did not benefit from the  greenback’s fall.
The  currency pair’s short-term performance is likely to  be affected by  multiple US macro releases and  vital Davos speeches.
The  EUR/USD currency pair was trading at  1.1081 as  at  11:28 GMT, having fallen from a  high of  1.1095. The  EUR/JPY currency pair was trading at  121.84 having dropped from a  high of  122.01.

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