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Euro Falls to 9-Day Lows on Trade Concerns and Positive US Data

May 16, 2019 at 17:58 by Simon Mugo

Assorted stacks of euro coins with euro banknotesThe euro today fell to 9-day lows against the US dollar in the American session following the release of upbeat US data and a rally in US equity markets. The EUR/USD currency pair attempted to rally earlier today following upbeat trade headlines regarding the eurozone, but the rally quickly fizzled out.

The EUR/USD currency pair today fell from a high of 1.1224 in the early European session to a low of 1.1171 in the American session and was near these lows at the time of writing.

The currency pair opened today’s session trading sideways for most of the Asian session. The pair rallied higher on news that President Donald Trump would delay the imposition of further tariffs on European car exports. However, the rally was short-lived as the pair quickly headed lower after the release of the eurozone trade balance data for March by Eurostat. The pair headed lower after Italy’s Deputy Prime Minister Matteo Salvini said that his government was willing to break the 3% debt-to-GDP ratio EU regulation. Speeches from the European Central Bank member Peter Praet and Vice President Luis de Guindos had a muted impact on the pair.

The release of upbeat US initial jobless claims data by the Department of Labor also contributed to the pair’s decline. The pair was further weighed down by the US-China that seems unlikely to end soon.

The currency pair’s future performance is likely to be affected by trade headlines, Italian news and tomorrow’s eurozone CPI data.

The EUR/USD currency pair was trading at 1.1179 as at 17:52 GMT having fallen from a high of 1.1224. The EUR/JPY currency pair was trading at 122.75 having risen from a low of 122.51.

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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