The EUR/USD currency pair today hit new session lows as the single currency weakened against the greenback on positive US data. The euro weakened against the US dollar upon the release of positive producer price index data by the Bureau of Labor Statistics, and the release of positive initial jobless claims data, and initial jobless claims data released by the Department of Labor.
The currency pair lost over 50 points from its daily high and is on track to close the fourth consecutive losing day since the beginning of the week.
The EUR/USD pair has lost significant ground since it hit a high of 1.0996 on Monday and a seasonal high of 1.1014 on Sunday, its highest level since November 2016. Given that the political risks in the Eurozone have abated with the election of Emmanuel Macron as French president, the euro might turn bullish if the European Central Bank tightens its monetary policy.
The upbeat US data released today such as the initial jobless claims data, which came in at 236,000 versus the expected 245,000, and the initial jobless claims data, which were recorded at 1.918 million as opposed to the expected 1.980 million, boosted the greenback. The producer price index data, also released today, recorded an annualized increase of 2.5% in April as compared to the expected 2.2%.
The currency pair’s future performance is likely to be influenced by the release of the German GDP figures and the US CPI and retail sales data, both scheduled for tomorrow.
The EUR/USD was trading at 1.0872 as at 17:24 GMT having dropped from a daily high of 1.0892. The EUR/JPY was trading at 123.84 having retraced its gains from a high of 124.41.
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