The euro today traded sideways against the US dollar in a low-volatility market environment as traders waited for Jerome Powell‘s statement and testimony later in the day. The EUR/USD currency pair had a muted reaction to the release of inflation data from both Germany and the USA as the technical conditions surrounding the pair remained neutral.
The EUR/USD currency pair today traded in a range marked by a high of 1.1020 and a low of 1.0999 but broke lower during Powell’s live testimony before the Joint Economic council.
The currency pair traded sideways from the Asian session as traders remained uncertain about its future direction. Technical analysts and traders stayed away from the pair, which was trading directionless in a range with a cluster of multiple indicators. The release of Germany’s consumer price index for October, which met expectations had minimal impact on the currency pair. According to the Federal Statistical Office, Germany’s headline CPI came in at 0.1% in-line with consensus estimates. The release of the upbeat eurozone industrial production report for September by Eurostat also had a muted impact on the pair.
The fiber barely moved following the release of the mixed US CPI data for October by the Bureau of Labor Statistics in the early American session. However, the pair broke lower during Jerome Powell’s hawkish testimony as the US Dollar Index spiked towards its daily high of 98.44.
The currency pair’s future performance is likely to be affected by the multiple European and US macro reports set for release tomorrow.
The EUR/USD currency pair was trading at 1.1001 as at 18:10 GMT having fallen from a high of 1.1020. The EUR/JPY currency pair was trading at 119.72 having dropped from a high of 120.17.
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