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