Euro Crashes on Risk-Off Sentiment, Recoups Losses on Better Mood

The  euro today fell against the  US dollar during the  Asian session, driven by  the  risk-off market sentiment that saw most Asian equity markets selloff. The  EUR/USD currency pair recovered some of  its losses during the  European session despite the  mixed releases from across the  euro area.
The  EUR/USD currency pair today fell from a  high of  1.1332 in  the  Asian session to  a  low of  1.1259 after the  European open before recouping some of  its losses.
The  currency pair headed lower at  the  start of  today’s session as  investor risk appetite remained very low, triggering a  selloff in  the  risk associated universe. The  pair kept falling after the  release of  German industrial production data for  May before the  European open. According to  Germany’s Federal Statistical Office, the  country’s industrial production grew 7.8% in  May versus the  expected 10% expansion. The  release of  mostly in-line French current account data for  May by  the  Bank of  France also did not help the  single currency. The  same applied to  Italy’s retail sales data released by  Istat, which met expectations but had a  muted impact on  the  pair.
The  pair’s recovery was primarily fueled by  the  greenback’s weakness, which saw the  US Dollar Index retreat from its daily highs. The  rising coronavirus cases in  several US states such as  California and  Florida contributed to  the  dollar’s selloff as  Donald Trump’s government plans more stimulus measures.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s ECB events and  geopolitical events.
The  EUR/USD currency pair was trading at  1.1278 as  at  19:38 GMT, having fallen from a  high of  1.1332. The  EUR/JPY currency pair was trading at  121.29, having dropped from a  high of  121.71.
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