The euro today fell against the US dollar erasing most of yesterday’s gains, which were driven by the Conservative Party‘s landslide win in the UK elections. The EUR/USD currency pair today traded sideways before plunging lower in the early American session as the greenback rallied higher boosted by positive trade headlines.
The EUR/USD currency pair today fell from a high of 1.1185 in the mid-European session to a low of 1.1117 in the American session and was near these lows at the time of writing.
The currency pair see-sawed between gains and losses trading in a tight range during the first half of today’s session. The pair failed to rally despite the release of the German wholesale price index data for November by the Federal Statistical Office. The wholesale prices came in at -0.1% translating to an annualised -2.5% with both prints meeting expectations. The release of the in-line Spain consumer price index report for November by the National Institute of Statistics boosted the pair slightly. The mixed Italian industrial turnover and orders report released by Istat also contributed to the pair’s initial gains.
The fiber fell in the early American session after the US and China confirmed that they had agreed on terms for a phase one deal boosting the greenback as tracked by the US Dollar Index. The disappointing US retail sales report for November released by the Census Bureau had a muted impact on the currency pair.
The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events.
The EUR/USD currency pair was trading at 1.1123 as at 17:20 GMT having fallen from a high of 1.1185. The EUR/JPY currency pair was trading at 121.54 having dropped from a high of 122.64.
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