The euro today fell to new daily lows against the US dollar early in the European session in a knee-jerk move that was likely driven by algorithmic trading. The EUR/USD currency pair later rose from its lows as the single currency rallied against the greenback, which remained on the back foot due to the devalued yuan.
The EUR/USD currency pair today fell to a low of 1.1162 before rising to its daily highs of 1.1230 then retracing some of its gains to trade almost flat for the day.
The currency pair today traded sideways at the start of the session before dipping to its daily lows over a 2-hour period at the end of the Asian session. The pair’s dip was not driven by any fundamental releases or news and may be the result of sudden selling pressure triggered by automated trading. The pair quickly recovered as the European markets opened despite concerns of a snap election in Italy. Matteo Salvini the Deputy Prime Minister is calling for an early election, which he is likely to win if the status quo stands.
The fiber’s recovery was further boosted by the weaker greenback as tracked by the US Dollar Index, which hit a low of 97.32. Trade concerns continued to affect the general risk sentiment among investors amid an economic slowdown in Europe, and across the globe.
The currency pair’s future performance is likely to be affected by tomorrow’s German ZEW survey and the US consumer price index report.
The EUR/USD currency pair was trading at 1.1211 as at 16:29 GMT having rallied from a low of 1.1162. The EUR/JPY currency pair was trading at 118.15 having risen from a low of 117.52.
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