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Euro Seesaws Against the Dollar on Eurozone and US Macro Data

August 20, 2020 at 17:26 by Simon Mugo

A closeup of a stack of euro coins with some notes

The euro today seesawed between losses and gains against the US dollar following yesterday’s massive drop after the release of the FOMC meeting minutes. The EUR/USD traded in a wide range today marked by declines and rallies as the single currency remained mainly at the greenback’s mercy after yesterday’s resurgence.

The EUR/USD currency pair today fell from a high of 1.1868 in the early European market to a low of 1.1802 in the initial American session but had recouped its losses by the time of writing.

The currency pair traded sideways at the start of today’s session before spiking to its daily highs soon after the release of the upbeat German producer price index report for July. According to the Federal Statistical Office, Germany’s PPI rose 0.2% in July, translating into an annualised -1.7%; both prints beat expectations by 0.1%. The pair kept falling after the release of the eurozone construction output data for June by Eurostat. The currency pair kept falling after the release of the latest European Central Bank‘s monetary policy meeting minutes. The Governing Council stated that the current data did not fully support recent positive economic developments.

The currency pair hit its daily lows during the American session after the release of the upbeat US initial jobless claims report by the Department of Labor. The initial claims came in at 14.84 million versus the expected 15 million.

The currency pair’s future performance is likely to be affected by tomorrow’s euro area Markit PMI releases.

The EUR/USD currency pair was trading at 1.1853 as at 17:25 GMT, having rallied from a low of 1.1802. The EUR/JPY currency pair was trading at 125.52, having risen from a low of 125.08.

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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