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Euro Trades Sideways Against Dollar on Mixed Euro Area Releases

December 8, 2020 at 20:48 by Simon Mugo
EUR100, EUR200, and EUR500 notes with a chart

The euro today traded sideways against the dollar amid multiple rally attempts that were followed by pullbacks as the bulls and bears fought for control. The EUR/USD ended up trading flat driven by the mixed investor sentiment as both the dollar and euro tried to rally unsuccessfully.

The EUR/USD currency pair today traded between a high of 1.2133 and a low of 1.2096 and was within this range at the time of writing.

The currency pair’s performance today was driven by the lack of volatility in the markets and the mixed releases from the eurozone. The pair rallied shortly after the release of the upbeat France trade balance report for October. According to the Ministry of Finance, France’s trade deficit fell to 4.85 billion beating analysts estimates set at 6.3 billion. The release of the mixed Eurozone Q3 GDP growth data by Eurostat, which came in at 12.5% missing expectations set at 12.6% drove the pair lower. The upbeat German ZEW economic sentiment survey, which was recorded at 55 versus the consensus estimates of 46, could not stop the euro’s decline.

The dollar’s rally as tracked by the US Dollar Index, which rallied to a high of 91.01 today, also held back the pair. The pair’s rally was also hindered by the rising tensions between the US and China and the Brexit uncertainty ahead of the December 31 deadline.

The currency pair’s future performance is likely to be affected by tomorrow’s German trade balance data and US dollar dynamics.

The EUR/USD currency pair was trading at 1.2102 as at 20:47 GMT having fallen from a high of 1.2133. The EUR/JPY currency pair was trading at 126.06 having dropped from a high of 126.25.

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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