The euro today fell against the US dollar breaking out of a consolidative range that was in place from the start of today’s session driven by shifting investor sentiment. The EUR/USD currency pair headed lower in the mid-European session as markets reacted to a US dollar rebound as tracked by the US Dollar Index.
The EUR/USD currency pair today fell from a session high of 1.1287 to a low of 1.1254 before retracing some of its losses at the time of writing.
The currency pair posted some gains during the Asian session to hit today’s session highs in the early European session driven by a weak greenback following yesterday’s dovish FOMC minutes. The currency pair’s rally was further limited by yesterday’s ECB monetary policy decision and Mario Draghi‘s dovish comments. The currency pair had a muted reaction to the final German consumer price index data for March released by the Federal Statistical Office, which came in at 0.4% and an annualized 1.3%; both prints met consensus estimates. The pair kept trading in a range following the release of German inflation data.
The pair extended its losses following the release of US PPI data by the Bureau of Labor Statistics as both prints came in above expectations. The US initial jobless claims data released by the Department of Labor also contributed to the euro’s woes by beating expectations.
The currency pair’s future performance is likely to be affected by tomorrow’s eurozone industrial production data and geopolitical events.
The EUR/USD currency pair was trading at 1.1271 as at 15:13 GMT having dropped from a high of 1.1287. The EUR/JPY currency pair was trading at 125.67 having risen from a low of 125.11.
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