The euro today fell against the dollar driven by the risk-off market sentiment as investors fled the riskier assets in favour of fo safe-haven instruments such as the dollar. The EUR/USD currency pair fell over 80 pips as markets reacted to news that Johnson & Johnson was pausing its COVID-19 vaccine trial due to unexplained illnesses. The EUR/USD currency pair today fell from an initial high of 1.1813 in the Australian market to a low of 1.1730 in the American session but was off these lows at the time of writing.
The pair’s decline was fueled by the dampened investor risk appetite as global uncertainties weighed on the markets. The release of the German consumer price index report, which was mostly in-line, could not stop its decline. According to the Federal Statistical Office, Germany’s inflation rate remained stable at -0.2%, while the harmonised print was -0.4% both meeting expectations. The release of the mixed German ZEW economic sentiment survey, which came in at 56.1 missing expectations had a muted impact on the single currency. The downbeat euro zone ZEW economic sentiment survey also contributed to the decline.
The fibre’s decline was fueled by the greenback’s rally as tracked by the US Dollar Index, which hit a high of 93.6 today. Rising US coronavirus and Donald Trump‘s insistence on holding mass rallies without following the WHO guidelines made investors jittery boosting the dollar.
The currency pair’s future performance is likely to be affected by tomorrow’s macro releases and US dollar dynamics.
The EUR/USD currency pair was trading at 1.1747 as at 20:56 GMT having fallen from a high of 1.1813. The EUR/JPY currency pair was trading at 123.89 having dropped from a high of 124.46.
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