Euro Trades at 3-Month Lows Against US Dollar Ahead of FOMC

The euro today fell against the US dollar reversing yesterday’s brief recovery despite mixed releases from the euro area, which were utterly ignored. The EUR/USD currency pair’s decline saw it erase breach the critical 1.10 level as the bearish pressure mounted driven primarily by the stronger greenback.
The EUR/USD currency pair today fell from an opening high of 1.1028 to a low of 1.0992 but had rallied back above the 1.10 level at the time of writing.
The currency pair opened today’s session heading lower driven by the risk-off market sentiment and the greenback’s rally as tracked by the US Dollar Index, which hit a high of 98.19 earlier today. The release of the upbeat German GfK consumer confidence survey for January, which came in at 9.9 beating expectations set at 9.6 had a muted impact on the pair. The disappointing German import price index report for December released by the Federal Statistical Office dragged the pair lower. The weak eurozone M3 money supply report for December released by the European Central Bank also did not help. The pair also ignored the upbeat Italian consumer and business confidence report from Istat.
The pair’s recovery started during the American session as the greenback gave up some of its gains. The release of the upbeat US goods trade balance for December by the Census Bureau had a minimal impact on the pair. The pair also ignored the mixed US pending homes sales report.
The currency pair’s short-term performance is likely to be affected by the US FOMC rate decision scheduled for 19:00 GMT.
The EUR/USD currency pair was trading at 1.1005 as at 17: 54 GMT having fallen from a high of 1.1028. The EUR/JPY currency pair was trading at 120.12 having dropped from a high of 120.37.

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