The euro today rallied briefly against the US dollar in the early European session before giving up its gains as the greenback recovered to post gains. The EUR/USD currency pair traded near its monthly lows as the pair seemed set to close the month with significant losses as compared to the gains recorded in October.
The EUR/USD currency pair today fell from a daily high of 1.1017 to a low of 1.1000 in a low liquidity market environment driven by the closure of US markets for Thanksgiving.
The currency pair opened today’s session trading sideways as investors adopted a wait and see approach towards the single currency. The pair rallied higher following the release of Spain’s preliminary CPI for November, which beat expectations. According to Spain’s National Institute of Statistics, November’s CPI was 0.2% versus the expected 0.1% print. The pair later fell following the release of the mixed euro area money supply report for November by the European Central Bank. The release of the disappointing eurozone business climate indicator for November also contributed to the pair’s decline. The upbeat Eurozone economic sentiment report also released by the European Commission could not reverse the pair’s losses.
The release of the weak preliminary German inflation report for November by the Federal Statistical Office drove the pair lower during the American session. The closure of US markets in honor of Thanksgiving day meant there were no releases from the US docket today.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple European releases, given the empty US dockets.
The EUR/USD currency pair was trading at 1.1005 as of 16:16 GMT, having fallen from a high of 1.1017. The EUR/JPY currency pair was trading at 120.54, having risen from a low of 120.34.
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