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Euro See-Saws Against Dollar on Weak German ZEW Survey Data

November 10, 2020 at 18:10 by Simon Mugo
Stacks of shiney euro coins plus some notes

The euro today oscillated between gains and losses against the US dollar falling on weak eurozone macro releases and rising as the greenback fell. The EUR/USD currency pair appeared to lose its bullish momentum today and traded sideways following yesterday’s decline.

The EUR/USD currency pair today rallied to a high of 1.1843 in the early Frankfurt session before falling to a low of 1.1780 in the middle of the session, then recouping some of its losses heading into the American session.

The currency pair’s initial decline occurred after news that the German government’s economic advisory council was predicting that the country’s GDP would contract by 5.1% this year. The release of the German ZEW economic sentiment survey, which came in 39 versus the expected 41.7 drove the single currency to its daily lows. The weak eurozone ZEW economic sentiment survey also contributed to the pair’s decline. Comments by the European Commission President Ursula von der Leyen that the commission is looking forward to the US rejoining the Paris Climate Agreement had a minimal impact on the euro’s performance.

Reports that the European Parliament and representatives of individual European Union governments had reached a deal on the EU’s 2021–2027 budget boosted the fibre. The weak US JOLTS job openings data for September released by the Bureau of Labor Statistics also contributed to the pair’ recovery.

The currency pair’s future performance is likely to be affected by tomorrow’s speeches by ECB policymakers given the empty European dockets.

The EUR/USD currency pair was trading at 1.1821 as at 18:09 GMT having rallied from a low of 1.1780. The EUR/JPY currency pair was trading at 129.49 having risen from a low of 123.99.

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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