Euro Falls to 3-Week Lows Against the Dollar Despite US Holiday

The euro today fell to new 3-week lows against the US dollar even though US markets were closed for the Martin Luther King Jr. holiday. The EUR/USD currency pair attempted to rally but failed to sustain its gains as the European session got underway.
The  EUR/USD currency pair today fell from a  high of  1.1103 in  the  early European session to  a  low of  1.1076 in  the  American session and  was trading near these lows at  the  time of  writing.
The  currency pair opened today’s session trading with a  bullish bias and  ended the  Asian session trading near its daily highs. However, the  pair’s price trajectory turned bearish at  the  start of  the  European sessions despite positive German data. The  release of  the German producer price index data for  December by  the  Federal Statistical office had a  muted impact on  the  pair. German PPI contracted by  0.2% beating analysts expectations of  a  0.6%, but the  single currency fell despite the  upbeat PPI report. Today’s decline marks the  third consecutive daily loss for  the  single currency despite the  prevailing risk-on market sentiment.
The fact that US equity markets were closed in honour of Martin Luther King Jr day meant that there were no macro releases from the US docket. The greenback’s rally as tracked by the US Dollar Index, which hit a high of 97.73, also contributed to the pair’s decline.
The  currency pair’s short-term performance is likely to  be affected by  the  European Central Bank President Christine Lagarde‘s speech scheduled for  18:30 GMT.
The  EUR/USD currency pair was trading at  1.1083 as  at  18:19 GMT having fallen from a  high of  1.1103. The  EUR/JPY currency pair was trading at  122.20 having dropped from a  high of  122.32.

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