Euro Falls, Rallies, Then Falls Again While Trading Against the Dollar

The  euro today fell against the  US dollar driven by  the  risk-off investor sentiment, which fueled the  greenback’s resurgence coupled with Friday’s upbeat US non-farm payrolls. The  EUR/USD currency pair later found support and  rallied higher amid improving sentiment as  investors hoped for  a resolution of the impasse on the US stimulus bill in Congress.
The  EUR/USD today fell from a  high of  1.1801 to  a  low of  1.1740 before recouping most of  its losses, then heading lower for  a  second time, and  was in  the  red at  the  time of  writing.
The  currency pair headed lower earlier today amid rising Sino-US tensions after the  US sanctioned Hong Kong leader Carrie Lam on  Friday. Lam joins the  growing list of  Chinese officials who have been recently sanctioned by  the  US amid rising tensions between the  two countries. The  pair later recovered and  rallied almost to  its daily highs heading into the  American session. However, the  pair resumed its downtrend amid the  greenback’s recovery as  tracked by  the  US Dollar Index, which hit a  high of  93.70 today.
The  pair got some short-lived relief after the  release of  the  upbeat eurozone Sentix investor confidence report for  August, which came in  at  -13.4 versus the  expected -15.2 figure. The  pair’s second downtrend was driven by  the  release of  the  US JOLTS job openings report for  June, which were better than expected.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s German ZEW survey data and  US dollar dynamics.
The  EUR/USD currency pair was trading at  1.1748 as  at  18:33 GMT having fallen from a  high of  1.1801. The  EUR/JPY currency pair was trading at  124.45 having dropped from a  high of  124.82.
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