Euro Fails to Hold On to New 2-Year Highs Hit Against the Dollar

The  euro today traded lower against the  US dollar after hitting new 2-year highs last seen in  May 2018 earlier in  the  session to  trade almost flat for  the  session. The  EUR/USD currency pair broke above the  crucial 1.1900 level but could not stay above the  level and  fell back as  the  bears took control of  the  price action.
The  EUR/USD currency pair today spiked to  a  high of  1.1915 before reversing and  falling to  a  low of  1.1818 and  then recouping its losses to  trade slightly higher for  the  day at  the  time of  writing.
The  currency pair once again attempted to  break convincingly above the  1.1900 level as  investor sentiment was not overly bullish. The  pair’s spike coincided with the  release of  the  upbeat German factory orders report for  June, which was better than expected. According to  the  Federal Statistical Office, Germany’s factory orders expanded 27.9% in  June beating analysts’ estimate of  a  10.1% increase. The  release of  the  Italian industrial output data for  June by  Istat despite the  print beating consensus estimates.
The  currency pair’s price action mirrored the  action in  the  greenback as  tracked by  the  US Dollar Index, which hit a low of 92.52 today. The release of upbeat US initial jobless claims data by  the  Department of  Labor, which came in  at  1.18 million versus the  expected 1.41 million.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s multiple trade balance reports from the  euro area.
The EUR/USD currency pair was trading at 1.1876 as at 20:38 GMT, having rallied from a low of 1.1817. The EUR/JPY currency pair was trading at 125.34, having risen from a low of 124.66.
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