The euro today fell for the third straight session against the US dollar driven by the risk-off investor sentiment and weak confidence prints released by the European Commission. The EUR/USD currency pair’s fall was further accelerated by the weak German inflation data and the resurgent US dollar, which rose driven by the flight to safety conditions.
The EUR/USD currency pair today fell from a session high of 1.1260 to a low of 1.1213 in the American session and was near these lows at the time of writing.
The currency pair traded sideways in the Asian session amid an indecisive market environment. However, it suddenly spiked lower in the early European session due to major selling activity before spiking higher and recouping all its losses. However, the rally had no follow through as the pair headed lower following the release of the eurozone business climate indicator data, which missed expectations as did the economic sentiment index. The final consumer confidence data was in line with expectations, but was still lower than February’s print.
The release of the US GDP data by the Bureau of Economic Analysis had a muted impact on the falling pair despite the print missing expectations. The preliminary German consumer price index data for March released shortly afterwards extended the pair’s decline as it came in at 1.30% versus the expected 1.50% print.
The pair’s future performance is likely to be affected by tomorrow’s German unemployment change data and the US PCE report.
The EUR/USD currency pair was trading at 1.1231 as at 17:45 GMT having risen from a low of 1.1213. The EUR/JPY currency pair was trading at 124.17 having rallied from a low of 123.65.
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