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