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Euro Trades Sideways on Weak German Data, EU Differences

May 7, 2020 at 10:40 by Simon Mugo

A closeup on the euro note

The euro today traded sideways against the US dollar amid weak macro reports from Germany and France as investors await crucial US jobs data. The EUR/USD currency pair today traded within a tight range following three daily pullbacks as divisions among EU nations persist.

The EUR/USD currency pair today traded in a range marked by a high of 1.0816 and a low of 1.0778 and was within this range at the time of writing.

The currency pair traded sideways from the start of today’s session even as the European Central Bank reiterated that it would continue with its bond-buying programme despite Germany’s top court ruling that the programme violates the country’s constitution. Germany’s health authority also announced that it would not hold daily coronavirus briefings anymore as the country reopens its economy despite the expected second wave of COVID-19. The release of Germany’s industrial production data for March by the Federal Statistical Office had a muted impact on the euro despite the print missing expectations.

The speech by the ECB’s Luis de Guindos boosted the par slightly as he confirmed that the bank was open to buying more assets under its PEPP program. The release of weak French industrial output data for March by Insee combined with Italy’s weak retail sales report for March released by Istat also damped the pair’s prospects.

The currency pair’s short-term performance is likely to be affected by the release of the US initial jobless claims report at 12:30 GMT.

The EUR/USD currency pair was trading at 1.0787 as at 10:39 GMT having fallen from a high of 1.0816. the EUR/JPY currency pair was trading at 114.92 having risen from a low of 114.59.

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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