The euro today traded in a sideways range against the US dollar despite attempting to break higher driven by positive German releases and the upbeat speech from Mario Draghi. The EUR/USD currency pair’s gains remained capped by the trade tensions between the US and China, which made investors cautious about buying risky assets such as the single currency.
The EUR/USD currency pair today traded in a range marked by a high of 1.1213 and a low of 1.1187 and was within this range at the time of writing.
The currency pair opened today’s session with a bullish bias as Asian investors bough the pair pushing it to session highs, but this did not last as the pair fell in the European session. The release of the upbeat German industrial production data for March in the early European session had a slightly positive impact on the pair. According to the Federal Statistical Office, Germany’s industrial production expanded by 0.5% in March as compared to the consensus estimate of a 0.5% contraction. The annualized print also beat expectations by a healthy margin.
The brave speech by the European Central Bank President Mario Draghi in the mid-European session had a muted impact on the currency pair, which formed a bearish doji during that hour. Draghi said that he would not give up on the fight against inflation.
The pair’s future performance is likely to be affected by tomorrow’s multiple US releases as well as trade headlines.
The EUR/USD currency pair was trading at 1.1204 as at 16:11 GMT having risen from a low of 1.1187. The EUR/JPY currency pair was trading at 123.37 having recovered from a low of 123.08.
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