Economics
Euro Falls Against US Dollar on Risk-Off Mood, Later Recovers
The euro today fell against the US dollar driven by the risk-off investor sentiment, which has been persistent this week triggering a selloff in riskier assets. The EUR/USD currency pair’s decline was also fueled by the weak German IFO survey data released earlier today combined with the greenback’s overall strength. The EUR/USD currency pair today fell from a high of 1.1679 during the Asian market to a low of 1.1626 in the early American […]
The euro today fell against the US dollar driven by the risk-off investor sentiment, which has been persistent this week triggering a selloff in riskier assets. The EUR/USD currency pair’s decline was also fueled by the weak German IFO survey data released earlier today combined with the greenback’s overall strength.
The EUR/USD currency pair today fell from a high of 1.1679 during the Asian market to a low of 1.1626 in the early American session but was trading at breakeven at the time of writing.
The currency pair’s initial decline was fueled by the weak investor risk appetite, which saw investor sell the single currency while buying the safe-haven dollar. The release of the disappointing German IFO business climate index for September, which came in at 93.4 versus the consensus estimate of 93.8 also drove the pair lower. The current assessment print also missed expectations. There was immense bearing pressure on the pair as the number of put options on the EUR/USD hit fresh 3-month highs today showing that professional traders were net short. The release of the European Central Bank‘s economic bulletin could not stop the pair’s decline.
The release of the latest US initial jobless claims report by the Department of Labor helped the pair stop its losing trend as the claims rose to 870,000 versus the expected 840,000 print. The pair rallied then higher during the Fed Chair Jerome Powell‘s speech.
The currency pair’s future performance is likely to be affected by market sentiment and macro releases.
The EUR/USD currency pair was trading at 1.1659 as at 16:42 GMT having recovered from a low of 1.1626. The EUR/JPY currency pair was trading at 122.96 having risen from a low of 122.97.
© SimonMugo for Forex News, 2020. |
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Post tags: Department of Labor, ECB Economic Bulletin, EUR/JPY, EUR/USD, Eurozone, German Ifo Business Climate, Investor Sentiment, Jerome Powell, Jobless Claims, Risk Appetite
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