Euro Whipsaws Against US Dollar Buffeted by Different Triggers

The Euro today traded in a directionless manner against the US dollar swinging between 20-day highs and daily lows in reaction to different triggers. The ER/USD currency pair today rose to new highs following the release of weak US housing data before falling and rising again.
The EUR/USD currency pair today whipsawed between a high of 1.1376 and a low of 1.1344 in reaction to different fundamental headlines that triggered shifts in investor sentiment.
The currency pair today headed lower in the Asian session amid weak investor sentiment before rallying higher in the early European session. The pair had a muted reaction to the release of the German Gfk consumer climate survey for March, which met consensus estimates set at 10.8. The pair rallied higher shortly thereafter driven largely by positive investor risk sentiment. The pair traded sideways into the mid-European session before rallying higher briefly in the early American session following the release of weak US housing starts and building permits data by the Census Bureau.
The pair fell shortly thereafter before rallying higher during the speech by Jerome Powell the Chair of the US Federal Reserve. Investors sold the greenback in reaction to Powell’s assertion that he would be patient before hiking rates citing slower economic growth in the USA, which caused the US Dollar Index to hit a low of 96.15.
The currency pair’s future performance is likely to be influenced by tomorrow’s eurozone business climate and economic confidence data.
The EUR/USD currency pair was trading at 1.1376 as at 17:56 GMT having risen from a low of 1.1344. The EUR/JPY currency pair was trading at 125.99 having fallen from a high of 126.22.

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