Euro Falls Against US Dollar, Later Recovers to Trade Sideways

The  euro today fell against the  dollar before recovering to  trade sideways boosted by  upbeat data from across the  euro area and  positive market sentiment. The  EUR/USD currency pair today fell to  its daily lows after the  release of  upbeat US consumer sentiment data but recovered quickly as  investor risk appetite remained elevated.
The  EUR/USD currency pair today fell to  a  low of  1.1827 in  the  early American session before recouping all its losses to  1.1870 shortly afterwards but was off these highs at  the  time of  writing.
The  currency pair traded sideways earlier today as  investors remained undecided before finally plunging lower. The  release of  the  upbeat German producer price index report for  August by  the  Federal Statistical Office had a  muted impact on  the  pair. The  PPI remained flat versus analysts expectations of  a  0.1% decline. The  release of  the  mixed Italian industrial sales and  orders report by  Istat also could not stop the  pair’s decline. The  positive eurozone current account data for  July by  the  European Central Bank also triggered a  brief rally by  the  single currency. The  eurozone current account was €17 billion versus the  expected €14.6 billion.
The  currency pair fell to  its daily lows after the  release of  the  Univerity of  Michigan US consumer sentiment survey for  September, which came in  at  78.9 versus the  expected 75. Speeches by  ECB members De Guidnos and  Schnabel had a  muted impact on  the  pair.
The  currency pair’s performance over the  upcoming weekend is likely to  be affected by  geopolitical events.
The  EUR/USD currency pair was trading at  1.1854 as  at  17:29 GMT, having rallied from a  low of  1.1827. The  EUR/JPY currency pair was trading at  123.87, having dropped from a  high of  124.30.
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