Euro Rallies From Multi-Year Lows Then Falls Amid Market Volatility

The  euro today rallied higher against the  US dollar early in  the  session as  buyers stepped in  pushing the  pair higher from yesterday’s multi-year lows. The  EUR/USD currency pair later lost momentum and  headed lower driven by  high demand for  the  US dollar.
The  EUR/USD currency pair today rallied from an  opening low of  1.0655 to  a  high of  1.0831 in  the  early European session before heading lower and  was near its daily lows at  the  time fo writing.
The  EUR/USD currency pair today rallied from its initial low, which were last seen in  April 2017, but ran out of  steam in  the  American session as  the  US Dollar Index recovered from some of  its daily losses. The  currency pair rallied to  its daily highs despite the  release of  weak German producer price index data for  February. According to  the  Federal Statistical Office, Germany’s PPI contracted by  0.4% versus the  expected 0.1% decline. The  disappointing eurozone current account data released by  the  European Central Bank also did not help the  pair as  the  eurozone current account shrunk more than expected.
Rising coronavirus cases across Europe, including the  rising death toll in  Italy and  Spain, also added to  the  pair’s woes. The  risk-off sentiment dominating markets also contributed to  the  pair’s later decline as  investors continued to  prefer safe-haven assets such as  the  dollar.
The currency pair’s future performance is likely to be affected by geopolitical events going into the weekend.
The  EUR/USD currency pair was trading at  1.0690 as  at  13:47 GMT having fallen from a  high of  1.1083. The  EUR/JPY currency pair was trading at  118.43 having risen from a  low of  117.84.

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