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Euro Weakens Against US Dollar After Release of US Data and Tax Plan

September 13, 2017 at 16:06 by Simon Mugo

One euro coin and a chartThe euro today was largely weaker against the US dollar and the release of positive US MBA Mortgage applications data mid-European session drove the pair lower. Releases from the European docket including the Eurozone industrial production data and employment data could not boost the single currency.

The EUR/USD currency pair lost over 100 points at the height of its decline as the US dollar rallied against the euro.

Several releases from the European docket late in the Asian session such as the German CPI data for August could not propel the EUR/USD pair higher. The CPI data released by the Federal Statistical Office met expectations by coming in at 1.8% on an annualized basis. The release of the Eurozone employment change data for the second quarter by Eurostat also had minimal impact on the pair as it was recorded at an annualized rate of 1.6%.  It was clear that the markets had stopped speculating on the European Central Bank‘s future policy decisions.

The release of the Mortgage Bankers Association mortgage applications data boosted the US dollar, as tracked by the US Dollar Index, to new highs and drove the pair lower. The announcement that a new tax plan would be brought before congress in the week starting September 25th also boosted the greenback.

Given tomorrow’s empty EU docket, the currency pair’s future performance is likely to be affected by the release of US jobless claims data as well as CPI data due for release tomorrow.

The EUR/USD currency pair was trading at 1.1899 as at 16:01 GMT having dropped from a high of 1.1995 earlier today. The EUR/JPY pair was trading at 131.60 having declined from a high of 132.00.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

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