Euro Drops on Weak German Jobs Data, and Cautious ECB Report

The euro today fell against the US dollar driven by negative investor sentiment, weak German jobs data as well as the ECB’s cautious review. The EUR/USD currency pair today fell to new weekly lows in the American session as Sino-US trade tensions dominated the markets affecting investor risk sentiment.
The EUR/USD currency pair today fell from an opening high of 1.1172 to a low of 1.1134 in the American session and was near these lows at the time of writing.
The currency pair opened today’s session trading sideways and was mostly flat throughout the Asian session. The pair dipped lower in the early European session despite the release of the French Q1 GDP data, which was in line with expectations. France’s Insee reported that annualized Q1 GDP was 1.2%  versus the expected 1.1%. The release of disappointing German unemployment change data also contributed to the decline. According to Germany’s Federal Statistical Office, unemployed persons increased by 60,000 and the unemployment rate rose to 5.0%. The publication of the cautious financial stability review by the European Central Bank also drove the pair lower.
The rising trade tensions between China and the U.S dampened investor risk sentiment contributing to the pair’s losses. The greenback’s strong performance as tracked by the US Dollar Index, despite the drop in 10-year US Treasury yields also drove the pair lower.
The currency pair’s future performance is likely to be influenced by geopolitical headlines as well as tomorrow’s multiple US releases.
The EUR/USD currency pair was trading at 1.1134 as at 15:04 GMT having dropped from a high of 1.1172. The EUR/JPY currency pair was trading at 121.80 having fallen from a high of 122.21.

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