The euro today traded sideways against the US dollar in a low-volatility market environment amid a lack of any significant fundamental triggers. The EUR/USD currency pair barely moved after the German GfK survey as investors waited for developments from the US-China trade talks.
The EUR/USD currency pair today rallied to a high of 1.1024 in the early American session before dropping to a low of 1.1007 and was within this tight range at the time of writing.
The currency pair flatlined at the start of today’s session following four days of consecutive declines as buyers created a floor cushioning the pair. The lack of any significant fundamental releases from the euro area left the pair at the mercy of the US dollar. The release of the German GfK consumer sentiment survey for December, which came in at 9.7 beating consensus estimates of 9.6 had a muted impact on the currency pair. The pair had a muted reaction to speeches from European Central Bank members including Chief Economist Philip Lane, Benoit Coeure and Vice President Luis de Guindos.
The lack of progress on the US-China trade negotiations front kept a lid on the pair as both sides maintained that they were close to a phase one deal. The pair rallied to its daily highs after the release of the US advance goods trade balance and the preliminary wholesale inventories for October before quickly falling.
The currency pair’s future performance is likely to be affected by tomorrow’s German import price index, multiple US releases, and trade headlines.
The EUR/USD currency pair was trading at 1.1016 as at 17:36 GMT having rallied from a low of 1.1007. The EUR/JPY currency pair was trading at 120.19 having risen from a low of 119.92.
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