Euro Falls to 3-Week Lows Against the Dollar Despite US Holiday

The euro today fell to new 3-week lows against the US dollar even though US markets were closed for the Martin Luther King Jr. holiday. The EUR/USD currency pair attempted to rally but failed to sustain its gains as the European session got underway.
The EUR/USD currency pair today fell from a high of 1.1103 in the early European session to a low of 1.1076 in the American session and was trading near these lows at the time of writing.
The currency pair opened today’s session trading with a bullish bias and ended the Asian session trading near its daily highs. However, the pair’s price trajectory turned bearish at the start of the European sessions despite positive German data. The release of the German producer price index data for December by the Federal Statistical office had a muted impact on the pair. German PPI contracted by 0.2% beating analysts expectations of a 0.6%, but the single currency fell despite the upbeat PPI report. Today’s decline marks the third consecutive daily loss for the single currency despite the prevailing risk-on market sentiment.
The fact that US equity markets were closed in honour of Martin Luther King Jr day meant that there were no macro releases from the US docket. The greenback’s rally as tracked by the US Dollar Index, which hit a high of 97.73, also contributed to the pair’s decline.
The currency pair’s short-term performance is likely to be affected by the European Central Bank President Christine Lagarde‘s speech scheduled for 18:30 GMT.
The EUR/USD currency pair was trading at 1.1083 as at 18:19 GMT having fallen from a high of 1.1103. The EUR/JPY currency pair was trading at 122.20 having dropped from a high of 122.32.

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