Euro Struggles to Stay Above 1.10, Spikes Higher on Weak US Data

The euro today struggled to break and stay above 1.10 when trading against the US dollar given yesterday’s decline and subsequent sideways trading range. The EUR/USD currency pair reacted positively to Germany’s IFO data but struggled to break decisively above the level until the weak US consumer data triggered a spike above the level.
The EUR/USD currency pair today rallied from a low of 1.0984 in the Asian session to a high of 1.1020 in the American session and was falling at the time of writing.
The currency pair traded sideways leaning slightly bearish during the Asian session as investor sentiment remained subdued. However, the pair rallied briefly after the release of Germany’s IFO business climate survey for September in the early European session. The country’s business climate improved to 94.6 as compared to the 94.3 recorded in August and beat analysts’ expectations set at 94.5. The IFO current assessment also improved to 98.5 beating consensus estimates of a drop to 97.0. The pair rallied across the 1.10 level soon afterwards but quickly fell below this psychological level at the start of the American session.
The currency pair spiked higher after the release of the US consumer confidence survey for September by the Conference Board, which came in at 125.1 missing expectations set at 133.0 by a wide margin. The pair fell then rallied higher, indicating that investors were ready to overlook Monday’s weak flash eurozone PMIs.
The currency pair’s future performance is likely to be affected by trade headlines and US new home sales data.
The EUR/USD currency pair was trading at 1.1003 as at 18:16 GMT having fallen from a high of 1.1020. The EUR/JPY currency pair was trading at 118.12 having dropped from a high of 118.56.

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