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Euro Falls Against US Dollar Extending Its 6-Day Losing Streak

September 8, 2020 at 19:56 by Simon Mugo

Euro coins stand on euro banknotes

The euro today fell against the US dollar for the sixth consecutive session despite the release of positive data from across the euro area. The risk-off investor sentiment drove the EUR/USD currency pair’s decline amid rising China-US tensions and the global equity markets selloff.

The EUR/USD currency pair today fell from a high of 1.1827 in the early Frankfurt session to a low of 1.1766 in the early American market but was slightly off these lows at the time of writing.

The currency pair’s initial decline was fueled by the escalating geopolitical tensions between China and the US during the Asian market. The release of the upbeat German trade balance report for July drove the pair to its daily highs. According to the Federal Statistical Office, Germany’s had a trade surplus of 18 billion in July versus the expected 16 billion trade surplus. The disappointing German import and export prices had a muted impact on the euro. The upbeat Italian retail sales report for July release by Istat also boosted the pair.

The pair kept falling despite the release of the positive eurozone Q2 GDP by Eurostat had a muted impact on the single currency. The eurozone GDP print came in at -11.8% versus the consensus estimate of -12.1%. The weak euro area employment change Q2 data also dragged the pair lower.

The currency pair’s future performance is likely to be affected by geopolitical events and US dollar dynamics.

The EUR/USD currency pair was trading at 1.1778 as at 19:55 GMT, having fallen from a high of 1.1827. The EUR/JPY currency pair was trading at 124.93, having dropped from a high of 125.64.

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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