Euro Trades at April 2017 Lows Despite Upbeat German Macro Prints

The euro today traded at multi-year lows against the US dollar despite the release of positive German macro reports in the early European session. The EUR/USD currency pair fell to lows last witnessed in April 2017 after the results of the last French election were announced.
The EUR/USD currency pair today traded between a high of 1.0821 and a new multi-year low of 1.0777 and was within this range at the time of writing.
The currency pair headed lower at the start of today’s session amid a risk-off market sentiment on which bears capitalised to push the pair lower. The release of the German producer price index report for January by the Federal Statistical Office coincided with the pair’s daily lows. The PPI print beat expectations by coming in at 0.8% versus the expected 0.2% and briefly lifted the pair. The release of the in-line German GfK consumer confidence survey, which was recorded at 9.8 meeting consensus estimates also boosted the pair. The release of the ECB’s account of monetary policy meeting had a muted impact on the currency pair. The report did not contain any new insights from the ECB’s Governing Council.
The pair spiked higher in the American session to hit its daily highs despite the release of the Philadelphia Fed manufacturing survey for February, which beat expectations. The greenback’s strength was reflected in the US Dollar Index, which hit a high of 99.91 earlier today.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple Markit US and European releases.
The EUR/USD currency pair was trading at 1.0795 as at 18:29 GMT having fallen from a high of 1.0821. The EUR/JPY currency pair was trading at 120.95 having risen from a low of 120.09.

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