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Euro Trades Sideways Above 1.17 As Investors Await Fed Decision

July 28, 2020 at 18:20 by Simon Mugo

Euro coins stand on euro banknotes

The euro today fell against the US dollar after hitting highs last seen in September 2018 yesterday as the greenback sold off. The EUR/USD currency pair was stuck trading in a sideways range slightly lower from its opening price driven by the non-volatile market environment.

The EUR/USD currency pair today traded at a high of 1.1773 before falling to a low of 1.1699 and then trading sideways from there and was still down for the day at the time of writing.

The currency pair traded lower at the start of today’s session as investors took profits following the pair’s recent 2-week rally. The fact that the European docket had no major release scheduled for today left the pair at the whims of the market. Investors were also a bit worried about the increasing likelihood of a second wave of coronavirus infections across Europe. Other assets in the risk universe, such as stocks, benefitted from the lull in the currency markets as European markets closed higher.

The pair’s performance was also supported by the greenback, which was also trading sideways as tracked by the US Dollar Index, which held yesterday’s low of 93.49. Investors are waiting to see if the stimulus bill unveiled by Senate leader Mitch McConnell will get approval from the Democrat-led House.

The currency pair’s future performance is likely to be affected by tomorrow’s FOMC rate decision.

The EUR/USD currency pair was trading at 1.1722 as at 18:19 GMT, having fallen from a high of 1.1773. The EUR/JPY currency pair was trading at 123.29, having fallen from a high of 123.98.

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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