Euro Trades at 3-Month Lows Against US Dollar Ahead of FOMC

The  euro today fell against the  US dollar reversing yesterday’s brief recovery despite mixed releases from the  euro area, which were utterly ignored. The  EUR/USD currency pair’s decline saw it erase breach the  critical 1.10 level as  the  bearish pressure mounted driven primarily by  the  stronger greenback.
The  EUR/USD currency pair today fell from an  opening high of  1.1028 to  a  low of  1.0992 but had rallied back above the  1.10 level at  the  time of  writing.
The  currency pair opened today’s session heading lower driven by  the  risk-off market sentiment and  the  greenback’s rally as  tracked by  the  US Dollar Index, which hit a  high of  98.19 earlier today. The  release of  the  upbeat German GfK consumer confidence survey for  January, which came in  at  9.9 beating expectations set at  9.6 had a  muted impact on  the  pair. The  disappointing German import price index report for  December released by  the  Federal Statistical Office dragged the  pair lower. The  weak eurozone M3 money supply report for  December released by  the  European Central Bank also did not help. The  pair also ignored the  upbeat Italian consumer and  business confidence report from Istat.
The pair’s recovery started during the American session as the greenback gave up some of its gains. The release of the upbeat US goods trade balance for December by the Census Bureau had a  minimal impact on  the  pair. The  pair also ignored the  mixed US pending homes sales report.
The  currency pair’s short-term performance is likely to  be affected by  the  US FOMC rate decision scheduled for  19:00 GMT.
The  EUR/USD currency pair was trading at  1.1005 as  at  17: 54 GMT having fallen from a  high of  1.1028. The  EUR/JPY currency pair was trading at  120.12 having dropped from a  high of  120.37.

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