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Euro Falls Against the Dollar for the 4th Straight Session on Weak Data

June 19, 2020 at 17:55 by Simon Mugo

A fan of 500-euro bills

The euro today fell against the US dollar for the fourth straight session after the American open where investor sentiment shifted decisively in favour of the dollar. The EUR/USD currency pair was also weighed down by weak data from Germany and the euro area as investors waited for European leaders to decide on the 750 billion euro fund.

The EUR/USD currency pair today fell from a high of 1.1254 in the mid-European session to a low of 1.1168 in the American session but was off these lows at the time of writing.

The currency pair inched higher at the start of today’s session due to subdued investor risk appetite as the second wave of coronavirus infections seems inevitable. The release of Germany’s producer price index report for May did not help the pair as it was below expectations. According to the Federal Statistical Office, Germany’s PPI fell 0.4% in May translating into an annualised 2.2% decline; both prints missed estimates by 0.1%. The release of Europe’s current account balance for April by the European Central Bank also had a muted impact on the pair. The eurozone’s current account balance fell to €10.2 billion versus March’s €40.7 billion.

The currency fell to its daily lows at the US open as investors piled into stocks and the greenback as tracked by the US Dollar Index, which hit a high of 97.71 today. The release of weak US current account data by the Bureau of Economic Analysis gave the pair some slight relief.

The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events.

The EUR/USD currency pair was trading at 1.1192 as at 17:54 GMT having fallen from a high of 1.1254. The EUR/JPY currency pair was trading at 119.58 having dropped from a high of 120.21.

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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