Euro Falls Against Strong Dollar Amid Rising Global Tensions

The  euro today fell against the  much stronger US dollar as  tensions between China and  the  US skyrocketed, causing investors to  seek refuge in  safe-haven assets. The  EUR/USD currency pair due to  the  prevailing risk-off market sentiment in  the  financial markets that saw European equity markets close lower for  the  day.
The  EUR/USD currency pair today fell from a  high of  1.0961 to  a  daily low of  1.0895 during the  American session and  was trading near these lows at  the  time of  writing.
The  currency pair opened today’s session trading with a  heavy bearish bias as  the  war of  words between Donald Trump‘s administration and  China heated up over the  weekend. President Trump accused China of  lying about the  severity of  the  virus from the  beginning leaving the  rest of  the  world ill-prepared for  the  current pandemic. US Secretary of  State Mike Pompeo and  his trade counterpart Peter Navarro both backed up the  President setting the  stage for  another significant spat with China. The  release of  upbeat Markit Germany Manufacturing PMI for  April by  Markit Economics had a  muted impact on  the  pair as  did the  disappointing Markit eurozone manufacturing PMI.
The  release of  the  disappointing US factory orders report for  March by  the  Census Bureau did not provide the  expected reprieve to  the  pair. The  greenback rallied for  most of  today’s session as  tracked by  the  US Dollar Index, which hit a  high of  99.60.
The  currency pair’s future performance is likely to  be affected by  geopolitical events and  tomorrow’s US data.
The  EUR/USD currency pair was trading at  1.0903 as  at  18:32 GMT having fallen from a  high of  1.0961. The  EUR/JPY currency pair was trading at  116.38 having dropped from a  high of  117.01.

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