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Euro Falls on Weak Sentiment Amid Rising US Coronavirus Cases

June 25, 2020 at 19:21 by Simon Mugo

A closeup on the euro note

The euro today fell against the US dollar driven by investor fears about the rising coronavirus cases across the US triggering a selloff of riskier assets such as the euro. The EUR/USD currency pair’s decline was further fueled by rising trade tensions between the EU and the US after Donald Trump threatened to impose sanctions on European exports.

The EUR/USD currency pair today fell from an opening high of 1.1259 during the Asian session to a low of 1.1190 in the mid-European session but had since recouped some of its losses.

The currency pair’s initial decline was triggered by the risk-off investor sentiment at the start of today’s session. The upbeat German GfK consumer confidence survey for July had a muted impact on the pair, which kept falling. News that Germany was planning to retaliate against the US if the latter halted progress on the Nord Stream 2 natural gas project through sanctions. The currency pair fell to its daily lows after the European Central Bank released the minutes of its last meeting, which did not have any surprises.

The release of the upbeat US durable goods orders report for May by the Census Bureau had a muted impact on the pair, which started reversing some of its loss, despite the print rising 15.8% versus the expected 10.9%. The US Q1 GDP report released by the Bureau of Economic Analysis also did not impact the pair.

The currency pair’s future performance is likely to be affected by tomorrow’s eurozone and US releases.

The EUR/USD currency pair was trading at 1.1224 as at 19:20 GMT having fallen from a high of 1.1259. The EUR/JPY currency pair was trading at 120.32 having dropped from a high of 120.62.

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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