The euro today fell against the much stronger US dollar, which was boosted by the upbeat data released on Monday. The EUR/USD currency pair kept falling despite the release of upbeat data from across the euro area as the coronavirus human and economic toll mounted.
The EUR/USD currency pair today fell from a high of 1.1064 in the Asian session to a low of 1.1033 in the American session and was near these lows at the time of writing.
The currency pair traded with a bearish bias from the Asian session driven by the prevailing risk-off market sentiment in the face of the spreading Wuhan coronavirus. The pair headed lower in the early European session despite the release of the preliminary Italian consumer price index data for January by Istat. According to Istat, Italian inflation expanded by 0.2% beating estimates by 0.1%. The Eurozone producer price index for December released by Eurostat also met consensus estimates by coming in at -0.7%, but could not lift the pair. The greenback’s rally as tracked by the US Dollar Index, which hit a high of 98.01 earlier today drove the pair lower.
The pair headed lower in the American session despite analysts downplaying the impact of the coronavirus. The release of the upbeat ISM New York business conditions index for January also boosted the dollar. The US factory orders for December released by the Census Bureau also drove the pair lower.
The currency pair’s future performance is likely to be driven by tomorrow’s multiple Markit PMI releases and employment data.
The EUR/USD currency pair was trading at 1.1044 as at 19:38 GMT having fallen from a high of 1.1064. The EUR/JPY currency pair was trading at 120.96 having risen from a low of 120.06.
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