The euro on Friday fell against the US dollar to continue trading within the tight range that has held for the past four days as it remained under pressure. The EUR/USD currency pair fell despite the release of the upbeat preliminary eurozone consumer price index data for November earlier today.
The EUR/USD currency pair today fell from a high of 1.1013 to a low of 1.1001, ignoring the upbeat euro area inflation data and was within this range at the time of writing.
The currency pair traded sideways during the Asian session before falling in the early European session driven by the US Dollar Index‘s rally. The release of the downbeat German retail sales data for October by the Federal Statistics Office contributed to the pair’s decline. German retail sales contracted 1.9% versus consensus estimates of 0% growth. The upbeat French CPI data for November combined with the in-line French Q3 GDP data both released by Insee boosted the single currency slightly. The pair kept falling despite the upbeat German unemployment report indicating that the unemployment rate was stable and that the number of jobless persons fell in November.
The currency pair went on to ignore Italy’s upbeat inflation data for November released by Istat soon afterwards. The same scenario played out after the release of in-line eurozone unemployment data by Eurostat revealing that the selling pressure had little to do with euro area macro reports.
The currency pair’s future performance is likely to be influenced by US dollar dynamics and geopolitical events.
The EUR/USD currency pair was trading at 1.1003 as at 11:37 GMT having fallen from a high of 1.1013. The EUR/JPY currency pair was trading at 120.54 having dropped from a high of 120.66.
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