The euro today traded in a tight range amid subdued market activity as investors waited patiently for the FOMC rate decision scheduled for later today. The release of mixed data from across the eurozone had minimal impact on the EUR/USD currency pair, which continued to trade above the crucial 1.1400 level.
The EUR/USD currency pair today traded between a high of 1.1450 and a low of 1.1421 before breaking lower following the release of the latest US jobs data.
The currency pair headed higher in the Asian session before declining in the early European session after the release of mixed French Q4 GP data by Insee. The release of the German import price index by the Federal Statistical Office also affected the euro as the monthly print missed expectations by 0.5%. The positive German GfK consumer confidence survey released at the same time could not lift the pair. The pair extended its decline after the European Commission released its consumer confidence index for January, which was lower than December’s figure. The pair rallied slightly after Germany’s Ministry for Economic Affairs announced that it had slashed GDP growth estimates for this year by 0.8% to1.0%.
The pair later headed lower after the release of the US ADP employment data, which beat expectations by a large margin. The mixed German CPI data released shortly before also contributed to the decline.
The pair’s short-term performance is likely to be affected by the FOMC rate decision at 19:00 GMT and Fed Chair Jerome Powell‘s speech.
The EUR/USD currency pair was trading at 1.1423 as at 15:50 GMT having dropped from a high of 1.1450. The EUR/JPY currency pair was trading at 125.18 having risen from a low of 124.86.
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