The euro today fell aggressively against the US dollar reversing most of yesterday’s gains after the New York Federal Reserve rushed to clarify dovish comments made by its President John Williams. The EUR/USD currency pair was also pressured by the weak German producer data released earlier today as well as the resurgent greenback.
The EUR/USD currency pair today fell from an opening high of 1.1268 to a low of 1.1217 in the American session and was near these lows at the time of writing.
The currency pair opened today’s session with a bullish attempt that was quickly doused by sellers leading to a bearish doji candle in the first hour. The pair then traded sideways for the rest of the Asian session as the bulls and bears fought for control. The pair attempted to rally following the release of the disappointing German producer price index for June by the Federal Statistical Office. The PPI print contracted by 0.4% versus the consensus estimate of a 0.2% decline. However, the pair’s crash happened at the European open despite the release of the upbeat eurozone current account data by Eurostat.
Most analysts attributed the pair’s to the greenback’s resurgence as tracked by the US Dollar Index as well as the rally by most European equity markets amid hope that the Federal Reserve will aggressively cut rates at its July 31 meeting by up to 50 basis points.
The currency pair’s short-term performance is likely to be influenced by the release of the University of Michigan consumer sentiment survey at 14:00 GMT.
The EUR/USD currency pair was trading at 1.1222 as at 13:31 GMT having dropped from a high of 1.1268. The EUR/JPY currency pair was trading at 120.90 having fallen from a high of 121.28.
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