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Euro Hits New 2020 Lows on Mixed German Data, Ahead of US NFP

February 7, 2020 at 10:10 by Simon Mugo

Euro coins and EUR banknotes closeupThe euro today fell to new 2020 lows against the US dollar in the early European session following the release fo mixed data from the German docket. The EUR/USD currency pair fell through significant support levels to hit a 4-month low driven by a risk-averse market environment ahead of the crucial US non-farm payrolls report.

The EUR/USD currency pair today fell from an Asian session high of 1.0985 to a low of 1.0956 in the early European session and was trading near these lows at the time of writing.

The currency pair extended its losing streak into the fifth consecutive day as investor risk appetite remained muted amid rising coronavirus deaths. The pair’s decline could be attributed to investor panic after Singapore discovered new infections in people with no Chinese travel history. The release of upbeat German trade balance data for February by the Federal Statistical Office had a muted impact on the pair. The report indicated that German trade surplus expanded to €19.2 billion in December beating analysts estimates set at €18.4 billion. However, German industrial production fell 3.5% in December surprising analysts who had predicted a meagre 0.2% decline adding to the single currency’s woes.

Furthermore, weak French industrial production data for December released by Insee also drove the pair lower. The mixed Italian retail sales report for December released by Istat had a muted impact on the pair.

The currency pair’s short-term performance is likely to be affected by the US non-farm payrolls report scheduled for release at 13:30 GMT.

The EUR/USD currency pair was trading at 1.0954 as at 10:09 GMT having fallen from a high of 1.0985. The EUR/JPY currency pair was trading at 120.29 having dropped from a high of 120.76.

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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