The euro today fell against the US dollar in what could only be attributed to technical factors including major resistance levels posed by the 200-day MA. The EUR/USD currency pair kept falling despite the release of upbeat German IFO survey data and inflation data from the eurozone driven by a much stronger dollar.
The EUR/USD currency pair today fell from an opening high of 1.1151 to a low of 1.1110 in the American session and was trading near these lows at the time of writing.
The currency pair fell from the start of today’s session as sellers overtook buyers and kept driving it lower. The release of the disappointing German producer price index report for November by the Federal Statistical Office contributed to the pair’s woes. The country’s PPI remained flat in November missing expectations of a 0.1% expansion. The release of the German IFO business climate index two hours boosted the pair halting its decline as the print came in at 96.3 beating expectations set at 95.5. The IFO current assessment and expectations prints also beat analysts’ estimates. The release of the in-line eurozone consumer price index data for November by Eurostat boosted the pair briefly; both the headline and core CPI prints met analysts estimates.
The fibre’s decline was further accelerated by the strong greenback as the US Dollar Index hit a high of 97.48. The dollar appeared immune to the ongoing impeachment proceedings against President Donald Trump.
The currency pair’s future performance is likely to be affected by US dollar dynamics, and geopolitical events amid tomorrow’s empty European dockets.
The EUR/USD currency pair was trading at 1.1115 as at 17:45 GMT having fallen from a high of 1.1151. The EUR/JPY currency pair was trading at 121.82 having dropped from a high of 122.13.
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