Euro Range-Bound as Selling Pressure Abates Despite USD Strength

The euro today traded sideways against the US dollar as the selling pressure abated as investors reacted to the calming of tensions between the US and Iran. The EUR/USD currency pair today attempted to rally unsuccessfully and was mostly stuck in slightly negative territory for most of today’s session despite upbeat German industrial data.
The EUR/USD currency pair today traded between in a tight range marked by a high of 1.1120 and a low of 1.1093 and was within this range at the time of writing.
The currency pair attempted to rally during the Asian session after yesterday’s speech by President Donald Trump, where he appeared to call for a truce with Iran. The pair tried to rebound following the release of the upbeat German industrial production data for December by the Federal Statistical Office after the print came in at 1.1% beating consensus estimate set at 0.7%. The disappointing German trade balance data for November released at the same time capped the pair’s gains. The country’s trade surplus missed expectations by € 1.25 billion. The release of the in-line eurozone unemployment rate for November by Eurostat, which was recorded at 7.5%, boosted the pair slightly.
The pair fell to its daily lows in the American session as US equity markets and the 10-year US bond yields rallied amid bullish investor sentiment. The release of the upbeat US weekly jobless claims report by the Department of Labor had a muted impact on the pair.
The pair’s future performance is likely to be affected by geopolitical events and tomorrow’s US non-farm payrolls report.
The EUR/USD currency pair was trading at 1.1108 as at 17:39 GMT, having recovered from a low of 1.093. The EUR/JPY currency pair was trading at 121.60, having risen from a low of 121.17.

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