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EUR/USD Hits New 2018 Lows Despite Positive Eurozone CPI Data

May 16, 2018 at 16:36 by Simon Mugo

A fan of 500-euro billsThe EUR/USD currency pair today hit fresh 2018 lows in the mid-European session despite the release of mostly positive Eurozone CPI data. The currency pair had a muted reaction to the European Central Bank President Mario Draghi’s speech in Frankfurt today, but headed lower triggered by the stronger US dollar.

The EUR/USD currency pair today lost over 90 points to decline from a high of 1.1854 to a low of 1.1763.

The currency pair maintained its losing streak for the third consecutive session hitting lows last seen in December 2017. The release of the German CPI data by the Federal Statistical Office in the early European session had minimal impact on the currency pair. The German CPI did not expand in April and came in at an annualized 1.6%, which was in line with expectations. The release of the Eurozone CPI data by Eurostat could not lift the currency pair despite meeting expectations. The headline CPI print came in at a monthly 0.3%, while the core CPI print came in at an annualized 0.7%.

Mario Draghi‘s speech had a muted impact on the currency pair, which headed lower as the greenback rallied higher. The US Dollar Index, which tracks the greenback’s performance, hit a high of 93.63 today. The release of the weak US housing starts data by the Census Bureau could not lift the pair.

The currency pair’s future performance is likely to be affected by the action in the 10-year US Treasury yields, which have been the main driver behind the pair’s latest performance.

The EUR/USD currency pair was trading at 1.1795 as at 16:29 GMT having declined from a high of 1.1854. The EUR/JPY currency pair was trading at 129.93 having dropped from a high of 130.57.

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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