Euro Falls on Weak German IFO Data, Positive Trade Headlines

The euro today fell against the US dollar as investors bought the greenback in response to President Donald Trump‘s positive comments on US-China trade talks overnight. The EUR/USD extended its losses following the release of weak German IFO survey results in the early European session before trading sideways into the American session.
The EUR/USD currency pair today fell from an initial high of 1.1153 to a low of 1.1097 in the mid-American session and was near these lows at the time of writing.
The currency pair opened today’s session trading with a bearish bias following President Trump’s comments saying that Chinese negotiators reached out to US trade representatives to reopen trade talks. His comments led to increased demand for the greenback as tracked by the US Dollar Index, which hit a high of 98.09. The pair fell further in the early European session following the release of the German IFO business climate data for August where the three prints missed expectations. The IFO expectations print came in at 91.3 versus the expected 91.5, while the IFO business climate was recorded at 94.3 as compared to the consensus estimate of 95.1.
The release of the US durable goods orders for July by the Census Bureau also drove the pair lower as the print came in at 2.1% versus the expected 1.1%. The non-defence capital goods orders also beat consensus estimates contributing to the decline.
The currency pair’s future performance is likely to be affected by tomorrow’s German GDP report and US consumer confidence data.
The EUR/USD currency pair was trading at 1.1105 as at 18:06 GMT having fallen from a high of 1.1153. The EUR/JPY currency pair was trading at 117.84 having rallied from a low of 116.82.

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