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Euro Trades up and Down Amid Shifting Market Dynamics

June 11, 2020 at 15:11 by Simon Mugo

A closeup of a stack of euro coins with some notes

The euro today traded both higher and lower against the US dollar driven by shifting market dynamics in favour of each other over sustained periods. The EUR/USD ended up trading flat after falling and rising severally primarily driven by investor sentiment amid a mostly empty European docket.

The EUR/USD currency pair today fell to a low of 1.1325 in the Asian session, rallied to breakeven, then fell again before rebounding to its daily high of 1.1403 in the American session.

The currency pair headed lower earlier today during the Asian session as investors sold the pair. This first leg of the decline could be attributed to fears about a potential second wave of coronavirus infections as protests rage in many European countries. The high number of job cuts announced across Europe have led to massive protests as companies initiate thousands of layoffs. The release of upbeat Italian industrial production data for April by Istat coincided with the pair’s first rally. Investors were also hopeful that EU member states would agree on the proposed Euro Fund as the frugal four countries appear to have relented their initial objections.

The pair later fell as the greenback rallied higher as tracked by the US Dollar Index, which hit a high of 96.49. However, the pair changed course after the release of the US initial jobless claims report, which was better than expected.

The currency pair’s future performance is likely to be affected by tomorrow’s macro reports from the US and European dockets.

The EUR/USD currency pair was trading at 1.1380 as at 15:10 GMT having retreated from a high of 1.1403. The EUR/JPY currency pair was trading at 121.38 having fallen from a high of 121.90.

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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