The euro today fell to new lows against the US dollar following Federal Research Chairmam, Jerome Powell‘s speech in Zurich during the early European session. The euro’s downtrend extended into the American session as demand for the US dollar increased driven by buying pressure from American traders.
The EUR/USD currency pair lost over 95 points to decline from a high of 1.1937 to a low of 1.1838 breaking below the crucial 1.1900 resistance level.
The currency pair’s downtrend started during the mid-Asian session extending a major retracement that has been in place since April 19th. Jerome Powell’s speech at the high level conference in Zurich organized by the Swiss National Bank and the International Monetary Fund accelerated the decline in the early European session. Powell stated that the Fed would watch the risk sentiment closely even as it expects normalization to be manageable for emerging countries. The release of the mixed German trade balance data by the Federal Statistical Office had a muted impact on the pair. The positive German industrial production data for March also could not lift the currency pair despite beating consensus estimates.
Renewed demand for the US dollar during the American session drove the currency pair to new lows even as the US Dollar Index hit a high of 93.28. Other currency pairs denominated by the US dollar were also affected.
The currency pair’s short-term performance is likely to be affected by President Donald Trump‘s decision on the Iran nuclear deal slated for 18:00 GMT today.
The EUR/USD currency pair was trading at 1.1857 as at 14:54 GMT having declined from a high of 1.1937. The EUR/JPY currency pair was trading at 129.47 having dropped from a high of 130.02.
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