TheÂ euro today registered aÂ significant drop against theÂ US dollar from theÂ mid-European session following high demand forÂ theÂ greenback boosted byÂ higher US Treasury yields. Mixed data from aÂ cross theÂ Eurozone such asÂ theÂ weak German GDP data released earlier today also contributed toÂ the euro’s weakness against theÂ greenback.
TheÂ EUR/USD currency pair today lost over 110 points toÂ drop from aÂ high ofÂ 1.1940 toÂ aÂ low ofÂ 1.1820.
TheÂ currency pair started today’s session trading inÂ aÂ range andÂ dipped slightly after theÂ release ofÂ theÂ German GDP data byÂ theÂ Federal Statistical Office inÂ theÂ early European session. TheÂ German GDP data missed expectations byÂ recording 0.3% growth versus theÂ expected 0.4% growth. However, theÂ Eurozone Q1 GDP data released byÂ Eurostat was inÂ line with expectations byÂ coming inÂ atÂ aÂ quarterly 0.4% andÂ anÂ annualized 2.5%. Furthermore, theÂ German ZEW survey ofÂ expectations also met expectations byÂ coming inÂ atÂ -8.2, while theÂ current situation survey was recorded atÂ 87.4. TheÂ Eurozone industrial production data also missed expectations.
TheÂ higher demand forÂ theÂ greenback asÂ tracked byÂ theÂ US Dollar Index, which hit aÂ high ofÂ 93.46, was theÂ main trigger behind theÂ pair’s decline. US 10-year Treasury yields rallied toÂ highs above 3.06%, which were last seen inÂ 2011. TheÂ headline US advance retail sales data forÂ April, which met expectations also contributed toÂ theÂ decline.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ tomorrow’s Eruozone CPI, Mario Draghi’s speech, andÂ US housing data.
TheÂ EUR/USD currency pair was trading atÂ 1.1861 asÂ atÂ 15:47 GMT having dropped from aÂ high ofÂ 1.1940. TheÂ EUR/JPY currency pair was trading atÂ 130.77 having declined from aÂ high ofÂ 131.13.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.