Euro Plunges on Weak German GfK Survey and Dovish ECB Minutes

The euro today fell against the dollar following the release of the weak Germany GfK survey early in the European session combined with the risk-off market sentiment. The EUR/USD currency pair today fell even though US markets were closed for the Thanksgiving Day celebrations as investors bought the safe-haven greenback.
The EUR/USD currency pair today rallied to a high of 1.1940 in the early Frankfurt session before falling to a low of 1.1885 in the early American market then recouping some of its losses.
The currency pair rallied at the start of today’s session extending yesterday’s rally before reversing course as European markets opened. The release of the German GfK consumer confidence survey for December, which came in at -6.7 versus the expected -5 drove the pair lower.  The release of the disappointing French consumer confidence survey for November by Insee also contributed to the euro’s weakness. The release of the European Central Bank‘s M3 money supply report, which met expectations also did not help the pair. The greenback’s rally as tracked by the US Dollar Index, which hit a high of 92.16 today also drove the pair lower.
The release of the ECB’s account of monetary policy meeting also contributed to the euro’s weakness as the Governing Council noted that there could be more job losses in future and that negative inflation rates would be around for a while.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple euro area releases.
The EUR/USD currency pair was trading at 1.1913 as at 18:44 GMT having fallen from a high of 1.1940. The EUR/JPY currency pair was trading at 124.18 having dropped from a high of 124.57. 
If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

80 − = seventy five