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Euro Trades Sideways Despite In-Line Eurozone Inflation Data

January 17, 2019 at 15:58 by Simon Mugo

A closeup of a stack of euro coins with some notesThe euro today traded in a tight range against the US dollar amid a market that was largely stable and lacked volatility. The release of upbeat data from the US docket in the early American session saw the EUR/USD currency pair come under intense selling pressure.

The EUR/USD currency pair today traded in a range marked by a high of 1.1407 and a low of 1.1370 and was still within this range at the time of writing.

The currency pair was in a downtrend during the Asian session where it hit a new weekly low. The pair then recovered as European markets opened, but investor sentiment towards the euro remained neutral given the recent weak macro releases from across the eurozone. The release of the eurozone CPI data for December early in the European session had a muted impact on the currency pair. According to Eurostat, the headline CPI print remained flat translating into an annualized 1%, which was in-line with expectations, while the core CPI print also met expectations. The eurozone construction output declined by 0.1% in November as compared to October.

The release of the upbeat US jobless claims data by the Department of Labor also triggered a brief decline by the pair. The jobless claims came in at 213,000 versus the expected 220,000, while the Philadelphia Fed manufacturing survey also beat expectations.

The pair’s future performance is likely to be affected by tomorrow’s eurozone current account data and the US consumer sentiment data.

The EUR/USD currency pair was trading at 1.1375 as at 15:46 GMT having fallen from a high of 1.1407. The EUR/JPY currency pair was trading at 123.92 having dropped from a high of 124.31.

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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