The euro today fell for the fourth consecutive session against the US dollar as the risk-off sentiment dominated the markets in the face of new coronavirus infections. The EUR/USD currency pair today broke below the critical 1.10 level despite European equities closing higher as investor risk aversion ebbed later in the session.
The EUR/USD currency pair today fell from a high of 1.1025 in the Asian session to a low of 1.0998 in the American session having breached the crucial 1.10 level.
The currency pair’s decline was attributed to the threat posed by the coronavirus, which has now spread to 10 countries. However, investor fears were allayed as it became clear that the virus’ economic impact was not as broad as initially feared. The Chinese government’s quick response has seen the death toll stalled at slightly over 100 casualties globally. The pair could not benefit from the improved risk sentiment as investors kept buying the greenback as tracked by the US Dollar Index, which hit a high of 98.16 earlier today. The positive close by European equities had a muted impact on the pair.
The pair kept falling after the release of US durable goods orders by the Census Bureau, which came in mixed with the headline print beating expectations and the core prints missing estimates. The release of the upbeat US consumer confidence data for January by the Conference Board also drove the pair lower.
The currency pairs future performance is likely to be affected by tomorrow’s multiple European releases and the FOMC rate decision.
The EUR/USD currency pair was trading at 1.1009 as at 17:49 GMT having recovered from a low of 1.0998. The EUR/JPY currency pair was trading at 120.15 having risen from a low of 119.81.
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