The euro today largely traded sideways against the US dollar alternating between gains and losses as markets awaited the results of today’s US midterm elections. The euro failed to rally significantly following the release of several positive PMI prints from across the euro area by Markit Economics, instead, it headed lower driven by negative sentiment.
The EUR/USD currency pair today traded between a low of 1.1391 and a high of 1.1426 and was within this range at the time of writing.
The currency pair started today’s session trading in a tight range before breaking to new highs in the late Asian session due to improved market sentiment. The pair’a rally extended into the early European session due to the favorable market sentiment. The release of the German factory orders for September by the Federal Statistical Office had a muted impact on the pair despite the print recording 0.3% growth. The pair rallied slightly despite the release of the weak Markit France services PMI and the Markit Italy Services PMI. The upbeat Markit Germany services PMI, which came in at 54.7 beating expectations by 1.1 did not boost the pair.
The positive Markit eurozone services PMI also had a muted impact on the pair. The pair’s movements today are largely driven by the constantly shifting investor sentiment.
The currency pair’s future performance will largely be determined by the outcome of the US midterm elections with markets currently pricing-in a split Congress.
The EUR/USD currency pair was trading at 1.1421 as at 12:46 GMT having rallied from a low of 1.1391. The EUR/JPY currency pair was trading at 129.26 having risen from a low of 128.84.
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