Euro Falls on Weak German Retail Sales, Later Crashes to 2-Year Lows

The euro today fell against the US dollar as the weak releases from across the euro area from previous days weighed on the single currency from the start of today’s session. The EUR/USD currency pair extended its losses following the release of weak German retail sales data amid positive US releases.
The EUR/USD currency pair today fell from an opening high of 1.1060 to a low of 1.1029 in the American session but was trading much lower at the time of writing.
The currency pair opened today’s session trading with a bearish bias following a week of disappointing releases from across the eurozone. The pair kept falling following the release of the German retail sales data for July by the Federal Statistical Office. Germany’s retail sales shrunk by 2.2% in July missing expectations of a 1.0% decline. The eurozone consumer price index report for August released by Eurostat lifted the pair slightly as the headline print met expectations set at 1.0%, while the core print slightly missed consensus estimates. The positive Italian CPI print released by Istat helped the pair trade sideways. The upbeat French inflation data released by Insee also helped stabilize the pair.
The pair tried to hold on following the release of the upbeat US PCE data by the Bureau of Economic Analysis. The pair crashed lower after the release of the weak University of Michigan consumer sentiment index.
The currency pair’s performance over the upcoming weekend is likely to be driven by geopolitical events.
The EUR/USD currency pair was trading at 1.0997 as at 15:24 GMT having crashed from a high of 1.1060. The EUR/JPY currency pair was trading at 116.79 having fallen from a high of 117.78.

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