The euro today fell to new weekly lows against the US dollar as the risk-off market sentiment persisted after Iran attacked US bases in Iraq. The EUR/USD currency pair’s decline was accelerated further by the release of weak data from the euro area earlier today.
The EUR/USD currency pair today fell from an Asian session high of 1.1168 to a low of 1.1109 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 tensions between Iran and the US escalated after Iran attacked American military bases in Iraq. However, the US confirmed that there were no fatalities from the attacks. The release of the German factory orders for November by the Federal Statistical Office also contributed to the pair’s decline. The factory orders contracted by 6.5% versus the expected 5.5% decline. The release of the disappointing eurozone business climate index for December by the European Commission also drove the pair lower. The weak French consumer confidence print released by Insee also contributed to the pair’s decline. The upbeat eurozone economic sentiment indicator and the consumer confidence print could not reverse the pair’s losses.
The pair’s decline paused briefly after the release of the upbeat US ADP employment change report for December. President Donald Trump’s speech later in the session diffused the Iranian tensions as he suggested negotiations with Iran instead of war.
The currency pair’s future performance is likely to be affected by geopolitical events and tomorrow’s German trade balance report.
The EUR/USD currency pair was trading at 1.1114 as at 18:30 GMT, having dropped from a high of 1.1168. The EUR/JPY currency pair was trading at 121.30, having rallied from a low of 120.18.
If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.
