Euro Sidelined by Coronavirus Despite In-Line German Inflation Data

The euro today traded with a negative bias against the US dollar extending its losing streak for the fourth straight session as the risk-off sentiment dominated markets. The EUR/USD currency pair’s performance was also negatively affected by the rising coronavirus cases globally, which has seen investors buy the safe-haven greenback.
The EUR/USD currency pair today rallied to a high of 1.1221 in the Asian session before falling to a low of 1.1143 in the mid-European session and was trading near these lows at the time of writing.
The currency pair rallied briefly during the early hours of the Asian session to hit its daily highs before reversing course and heading lower. The single currency kept falling despite the release of the in-line German consumer price index data for February. According to the Federal Statistical Office, the country’s inflation gauge remained stable at 0.4% in February translating into an annualised 1.7%, hence, meeting expectations. According to Insee, France’s official statistics agency, the country’s inflation remained stagnant at 0%, while Spain’s National Institute of Statistics reported that the country’s CPI print contracted by 0.1%.
Investors remained unimpressed by the quantitative easing measures announced by the European Central Bank yesterday during its interest rate announcement. The pair kept falling despite the release of weak US import and export price indices by the Bureau of Labor Statistics in the early American session.
The currency pair’s performance over the upcoming weekend is likely to be affected by coronavirus headlines and geopolitical events.
The EUR/USD currency pair was trading at 1.1116 as at 12:55 GMT having fallen from a high of 1.1221. The EUR/JPY currency pair was trading at 119.38 having risen from a low of 116.96

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