The euro today fell against the US dollar driven by a lack of macro releases from across the euro area and the resurgent greenback. The EUR/USD currency pair later rallied from its daily lows despite the release of mostly in-line US inflation data in the American session.
The EUR/USD currency pair today fell from a high of 1.1144 in the Asian session to a low of 1.1104 in the American session but had since recouped most of its losses.
The currency pair rallied higher in the Asian session due to improved investor sentiment as markets await the signing of the US-China trade deal tomorrow. However, it seems like investor risk appetite soured in the early European session leading to the pair’s decline as analysts debated the likelihood of a phase two deal once the phase one deal is signed. The pair’s decline was also attributed to the greenback’s rally as tracked by the US Dollar Index, which hit a high of 97.56 before falling to its daily lows later.
The pair hit its daily lows in the early American session following the release of the in-line US consumer price index report for December by the Bureau of Labour Statistics. The annualized CPI prints met expectations, while the monthly prints missed expectations by 0.1%. The pair later recovered after the US dollar lost its appeal and fell.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple euro area and US macro releases.
The EUR/USD currency pair was trading at 1.1131 as at 19:07 GMT, having recovered from a low of 1.1104. The EUR/JPY currency pair was trading at 122.40, having dropped from a high of 122.76.
If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.
