EUR/USD Trades Sideways on Italian Political Concerns

The EUR/USD currency pair today traded sideways following the resurgence of Italian political risks due to tensions within the coalition government. The currency pair’s losses were largely limited by the weaker US dollar following President Donald Trump‘s dovish comments yesterday.
The EUR/USD currency pair today traded in a range between a high of 1.1673 and a low of 1.1626 up to the time of writing.
The currency pair rallied slightly in the Asian session capitalizing on the US dollar selloff that was triggered by President Trump’s comments. The pair headed lower in the early European session despite the release of positive German producer price index data by the Federal Statistical Office. The German PPI came in at a monthly 0.3%, which was in line with expectations, and an annualized 3.0% beating consensus estimates by 0.1%. The Eurozone current account data released by the European Central Bank, which missed expectations by a slight margin, also contributed to the pair’s decline.
The emergence pf political differences in Italy’s coalition government as evidenced by Claudio Borghi‘s comments also dragged the pair lower. However, the pair’s losses were largely limited by Donald Trump’s comments on CNBC stating that he prefers a weaker US dollar and that he does not support the Fed’s rate hikes.
The currency pair’s future performance is likely to be affected by geopolitical events given the upcoming weekend and the empty US economic docket.
The EUR/USD currency pair was trading at 1.1662 as at 12:05 GMT having risen from a low of 1.1626 earlier today. The EUR/JPY currency pair was trading at 130.98 having rallied from a low of 130.59.

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