Euro Drops and Trades Flat on Weak German Investor Sentiment

The euro today has been alternating between gains and losses against the US dollar from the start of the session due to the risk-off sentiment in the markets. The EUR/USD currency pair dipped to new daily lows after the release of the German ZEW survey data, whose prints came in way below expectations.
The EUR/USD currency pair today traded in a range marked by a high of 1.1598 and a low of 1.1564, but was trading flat at the time of writing.
The currency pair headed lower at the start of today’s session largely due to the risk-off market sentiment occasioned by the tensions between the USA, Turkey and Saudi Arabia due to the killing of Jamal Khashoggi. The pair rallied higher in the early European session as the markets risk appetite improved, but this did not last. The release of the German ZEW survey data shortly thereafter dragged the pair lower as the survey data indicated that current conditions in October missed expectations by coming in at 70.1 versus the expected 74.4 print.
The ZEW survey expectations also missed consensus estimates by a large margin by coming in at -24.7 versus the expected -12 print. The eurozone ZEW survey of economic sentiment also disappointed by coming in at -19.4 versus the previous figure of -7.2. The eurozone’s August trade surplus released by Eurostat dropped to €11.7 billion.
The release of the US industrial production data and manufacturing production data for September is likely to influence the pair’s performance.
The EUR/USD currency pair was trading at 1.1587 as at 12:02 GMT having recovered from a low of 1.1564. The EUR/JPY currency pair was trading at 129.81 having risen from a low of 129.53.

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