The euro today rallied higher against the US dollar driven by investor hopes of a breakthrough in the ongoing Sino-US trade talks and a risk-on market sentiment. The EUR/USD currency pair’s performance today was largely driven by market sentiment given that US markets were closed in celebration of Presidents’ Day holiday.
The EUR/USD currency pair today traded between a high of 1.1334 and a low of 1.1292 by rallying higher then retracing its gains before repeating the same cycle.
The currency pair initially rallied higher buoyed by investor hopes of a positive outcome from the US-China trade negotiations. However, the rally reversed soon afterwards and the pair fell to new lows in the early European session as market sentiment shifted. The pair rallied again in the European session to hit new 3-day highs as markets finally shrugged off Friday’s dovish comments by the European Central Bank. The lack of any major releases from the European docket meant that the currency pair would be largely driven by the US dollar’s performance as well as investor risk sentiment.
The pair headed lower in the early American session as the greenback recovered through a pullback as tracked by the US Dollar Index. The pair had retraced most of its gains at the time of writing.
The currency pair’s future performance is likely to be affected by tomorrow’s Eurozone ZEW survey data and US NAHB housing market index.
The EUR/USD currency pair was trading at 1.1305 as at 17:16 GMT having dropped from a high of 1.1334. The EUR/JPY currency pair was trading at 125.02 having declined from a high of 125.27
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