The EUR/USD currency pair today maintained the losses it accumulated during the early European session despite the release of positive US data in the North American session. The currency pair was under intense selling pressure from the beginning of today’s session, but did not decline significantly after the release of positive US personal income data.
The currency pair lost about 50 points at the height of its decline during the European session.
The EUR/USD currency pair was under intense selling pressure after it hit a multi-month high at 1.1440, which formed a psychological resistance level. The release of positive German retail sales data for the month of May could not stop the currency pair’s decline. The release of the German unemployment rate by the Federal Statistical Office, which came in at 5.7%, thereby meeting expectations also could not boost the single currency.
The release of the US personal spending data by the Bureau of Economic Analysis for the month of May actually caused the currency pair to rally higher. Other positive data from the US docket such as US personal income data did not stop the pair’s brief rally. The currency pair only declined after the release of the University of Michigan confidence index, which came in at 95.1 exceeding market expectations.
The future performance of the currency pair is likely to be affected by the release of Eurozone Markit manufacturing PMI data and US ISM manufacturing and employment data, both scheduled for Monday.
The EUR/USD currency pair was trading at 1.1408 as at 16:25 GMT having rallied from a low of 1.1390. The EUR/JPY was trading at 128.22 having rallied from a low of 127.41.
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