The euro today fell to new 3-day lows against the resurgent US dollar as investors bought the world’s reserve currency with positive expectations. The EUR/USD currency pair extended yesterday’s fall, which was triggered by the FOMC‘s positive outlook for the US economy.
The EUR/USD currency pair today fell from a high of 1.1219 in the early European session to a low of 1.1171 in the American session.
The currency pair opened today’s session with a positive bias as investors hoped that the single currency would recover from yesterday’s dip triggered by the Fed Chair Jerome Powell‘s upbeat comments about the US economy. However, the pair dipped lower after the release of weak German retail sales data for March by the Federal Statistical Office, which contracted by 0.2% and dropped to an annualized -2.1% versus the expected 2.9% print. The pair then rallied to its daily highs despite the release of weak Markit/BME Germany manufacturing PMI, which came in at 44.4 as compared to the estimated 4.5. The pair then dropped shortly after the release of the upbeat Markit Eurozone manufacturing PMI, which was recorded at 47.9 versus the consensus estimate of 47.8.
The pair kept dropping in the early American session following the release of the upbeat US factory orders data for March by the Census Bureau.
The currency pair’s future performance is likely to be influenced by tomorrow’s eurozone CPI data and the US non-farm payrolls report.
The EUR/USD currency pair was trading at 1.1176 as at 17:25 GMT having dropped from a high of 1.1219. The EUR/JPY currency pair was trading at 124.63 having fallen from a high of 125.12.
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