Euro Falls Against Dollar on Risk-Off Sentiment As Investors Flee

The  euro today fell against the  dollar driven by  the  risk-off market sentiment as  investors fled the  riskier assets in  favour of  fo safe-haven instruments such as  the  dollar. The  EUR/USD currency pair fell over 80 pips as  markets reacted to  news that Johnson & Johnson was pausing its COVID-19 vaccine trial due to  unexplained illnesses. The  EUR/USD currency pair today fell from an  initial high of  1.1813 in  the  Australian market to  a  low of  1.1730 in  the  American session but was off these lows at  the  time of  writing.
The  pair’s decline was fueled by  the  dampened investor risk appetite as  global uncertainties weighed on  the  markets. The  release of  the  German consumer price index report, which was mostly in-line, could not stop its decline. According to the  Federal Statistical Office, Germany’s inflation rate remained stable at  -0.2%, while the  harmonised print was -0.4% both meeting expectations. The  release of  the  mixed German ZEW economic sentiment survey, which came in  at  56.1 missing expectations had a  muted impact on  the  single currency. The  downbeat euro zone ZEW economic sentiment survey also contributed to  the  decline.
The  fibre’s decline was fueled by  the  greenback’s rally as  tracked by  the  US Dollar Index, which hit a  high of  93.6 today. Rising US coronavirus and  Donald Trump‘s insistence on  holding mass rallies without following the  WHO guidelines made investors jittery boosting the  dollar.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s macro releases and  US dollar dynamics.
The  EUR/USD currency pair was trading at  1.1747 as  at  20:56 GMT having fallen from a  high of  1.1813. The  EUR/JPY currency pair was trading at  123.89 having dropped from a  high of  124.46.
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