Euro Declines Against US Dollar on Positive US Import Data

The euro today declined against the extremely strong US dollar after the release of positive US data relating to import prices. This was the fourth consecutive bearish session, which was accelerated by disappointing German ZEW survey data, released early in the European session.

The EUR/USD currency pair today lost over 50 points from its opening quote and it was on a downward trend for most of today’s session.

The euro was largely apathetic after the release of the German ZEW survey of economic sentiment, which did not meet expectations, as it came in at 17.6 versus the expected figure of 20. The Eurozone ZEW survey of economic sentiment for October also disappointed as it was recorded at 26.7, which was lower than the previous figure of 31.7. The Eurozone CPI for September released by Eurostat met expectations by coming in at an annualized rate of 1.5%.

The US dollar was stronger against the euro for most of today’s session, as tracked by the US Dollar Index. The release of US import price index for September, which was recorded at 0.7% on monthly basis boosted the greenback as it was higher than expected. The industrial production growth rate for September also met expectations by coming in at 0.3%. The NAHB housing market index for October also beat market consensus by coming in at 68 instead of 64.

The currency pair’s future performance is likely to be affected by Mario Draghi‘s speech and the release of US housing starts data, both scheduled for tomorrow.

The EUR/USD currency pair was trading at 1.1749 as at 14:58 GMT having dropped from its opening price of 1.1795. The EUR/JPY currency pair was trading at 132.00 having declined from a daily high of 132.37.

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