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Euro Soars on US-China Trade Deal Optimism, Later Crashes

November 21, 2019 at 15:48 by Simon Mugo

EUR100, EUR200, and EUR500 notes with a chartThe euro today rallied to its daily highs in the early American session after news emerged that China and the US were keen on signing a phase one deal. The EUR/USD currency pair today rallied higher after the release of the minutes of the ECB Governing Council‘s October meeting in which the board called for unity among member countries.

The EUR/USD currency pair today rallied from a low of 1.1070 in the early European session to a high of 1.1096 in the early American session but had crashed back below its daily lows at the time of writing.

The currency pair traded with a bearish bias during the Asian session as inventors weighed the impact of the US-China tensions. The pair spiked higher at the start of the European session after Reuters reported that German exports to the US grew in Q3, citing data from the Federal Statistical Office; this is likely to anger President Donald Trump who wants a narrower trade deficit with Germany. The pair posted some gains after the release of the ECB’s account of monetary policy meeting in the mid-European session.

The fiber hit its daily highs after news leaked that there was progress in the US-China trade talks. The release of the upbeat eurozone consumer confidence report by the European Commission had a muted impact on the pair despite the print beating expectations by 0.1%.

The currency pair’s future performance is likely to be affected by tomorrow’s multiple euro area releases as well as geopolitical events.

The EUR/USD currency pair was trading at 1.1070 as at 15:47 GMT having crashed from a high of 1.1096. The EUR/JPY currency pair was trading at 120.20 having dropped from a high of 120.57.

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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