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Euro Falls Against US Dollar, Later Recovers to Trade Sideways

September 18, 2020 at 17:30 by Simon Mugo

Stacks of coins with a background of euros

The euro today fell against the dollar before recovering to trade sideways boosted by upbeat data from across the euro area and positive market sentiment. The EUR/USD currency pair today fell to its daily lows after the release of upbeat US consumer sentiment data but recovered quickly as investor risk appetite remained elevated.

The EUR/USD currency pair today fell to a low of 1.1827 in the early American session before recouping all its losses to 1.1870 shortly afterwards but was off these highs at the time of writing.

The currency pair traded sideways earlier today as investors remained undecided before finally plunging lower. The release of the upbeat German producer price index report for August by the Federal Statistical Office had a muted impact on the pair. The PPI remained flat versus analysts expectations of a 0.1% decline. The release of the mixed Italian industrial sales and orders report by Istat also could not stop the pair’s decline. The positive eurozone current account data for July by the European Central Bank also triggered a brief rally by the single currency. The eurozone current account was €17 billion versus the expected €14.6 billion.

The currency pair fell to its daily lows after the release of the Univerity of Michigan US consumer sentiment survey for September, which came in at 78.9 versus the expected 75. Speeches by ECB members De Guidnos and Schnabel had a muted impact on the pair.

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 1.1854 as at 17:29 GMT, having rallied from a low of 1.1827. The EUR/JPY currency pair was trading at 123.87, having dropped from a high of 124.30.

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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