The euro today rallied higher against the US dollar early in the session as buyers stepped in pushing the pair higher from yesterday’s multi-year lows. The EUR/USD currency pair later lost momentum and headed lower driven by high demand for the US dollar.
The EUR/USD currency pair today rallied from an opening low of 1.0655 to a high of 1.0831 in the early European session before heading lower and was near its daily lows at the time fo writing.
The EUR/USD currency pair today rallied from its initial low, which were last seen in April 2017, but ran out of steam in the American session as the US Dollar Index recovered from some of its daily losses. The currency pair rallied to its daily highs despite the release of weak German producer price index data for February. According to the Federal Statistical Office, Germany’s PPI contracted by 0.4% versus the expected 0.1% decline. The disappointing eurozone current account data released by the European Central Bank also did not help the pair as the eurozone current account shrunk more than expected.
Rising coronavirus cases across Europe, including the rising death toll in Italy and Spain, also added to the pair’s woes. The risk-off sentiment dominating markets also contributed to the pair’s later decline as investors continued to prefer safe-haven assets such as the dollar.
The currency pair’s future performance is likely to be affected by geopolitical events going into the weekend.
The EUR/USD currency pair was trading at 1.0690 as at 13:47 GMT having fallen from a high of 1.1083. The EUR/JPY currency pair was trading at 118.43 having risen from a low of 117.84.
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