Euro Hits New 2020 Lows on Mixed German Data, Ahead of US NFP

The  euro today fell to  new 2020 lows against the  US dollar in  the  early European session following the  release fo mixed data from the  German docket. The  EUR/USD currency pair fell through significant support levels to  hit a  4-month low driven by  a  risk-averse market environment ahead of  the  crucial US non-farm payrolls report.
The  EUR/USD currency pair today fell from an  Asian session high of  1.0985 to  a  low of  1.0956 in  the  early European session and  was trading near these lows at  the  time of  writing.
The  currency pair extended its losing streak into the  fifth consecutive day as  investor risk appetite remained muted amid rising coronavirus deaths. The  pair’s decline could be attributed to  investor panic after Singapore discovered new infections in  people with no Chinese travel history. The  release of  upbeat German trade balance data for  February by  the  Federal Statistical Office had a  muted impact on  the  pair. The  report indicated that German trade surplus expanded to  â‚¬19.2 billion in  December beating analysts estimates set at  â‚¬18.4 billion. However, German industrial production fell 3.5% in  December surprising analysts who had predicted a  meagre 0.2% decline adding to  the  single currency’s woes.
Furthermore, weak French industrial production data for  December released by  Insee also drove the  pair lower. The  mixed Italian retail sales report for  December released by  Istat had a  muted impact on  the  pair.
The  currency pair’s short-term performance is likely to  be affected by  the  US non-farm payrolls report scheduled for  release at  13:30 GMT.
The  EUR/USD currency pair was trading at  1.0954 as  at  10:09 GMT having fallen from a  high of  1.0985. The  EUR/JPY currency pair was trading at  120.29 having dropped from a  high of  120.76.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *