TheÂ euro today traded lower against theÂ US dollar amid theÂ deepening ofÂ theÂ political crisis inÂ Germany asÂ theÂ Interior Minister Horst Seehofer threatened toÂ resign. TheÂ release ofÂ mixed Eurozone PMIs byÂ IHS Markit inÂ theÂ early European session could not reverse theÂ pair’s downtrend asÂ theÂ US dollar gained ground over theÂ single currency.
TheÂ EUR/USD currency pair today declined from anÂ opening high ofÂ 1.1678 toÂ aÂ low ofÂ 1.1596 andÂ was onÂ aÂ downtrend atÂ theÂ time ofÂ writing.
TheÂ currency pair’s decline was largely triggered byÂ Horst Seehofer’s ultimatum asÂ he insists that police atÂ theÂ Bavarian border should turn away asylum seekers who have sought asylum elsewhere. This contradicts Angela Merkel‘s position asÂ she insists onÂ implementing the migration deal reached last week atÂ theÂ European Union Summit. Mixed releases from theÂ European docket such asÂ theÂ Markit/BME Germany Manufacturing PMI, which came inÂ atÂ 55.9 meeting expectations, had aÂ muted impact onÂ theÂ pair. TheÂ Markit Eurozone Manufacturing PMI missed consensus estimates byÂ aÂ slight margin. TheÂ Eurozone employment rate released byÂ Eurostat beat expectations byÂ coming inÂ atÂ 8.4% versus theÂ expected 8.5%.
TheÂ release ofÂ the US ISM Manufacturing PMI, which beat expectations, inÂ theÂ early American session had minimal impact onÂ theÂ pair. TheÂ Markit US Manufacturing PMI also beat expectations byÂ aÂ slight margin.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ theÂ outcome ofÂ theÂ crisis meeting between Angela Merkel andÂ Horst Seehofer atÂ 15:00 GMT.
TheÂ EUR/USD currency pair was trading atÂ 1.1618 asÂ atÂ 14:55 GMT having dropped from anÂ initial high ofÂ 1.1678. TheÂ EUR/JPY currency pair was trading atÂ 128.64 having declined from aÂ high ofÂ 129.50.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.