The EUR/USD currency pair was trading sideways today after the release of disappointing unemployment data from the Eurozone by Eurostat. The currency pair did not decline significantly after the release mainly because of the weaker US dollar as tracked by the US Dollar Index, which struggled to rise above 100.00.
The currency pair was trading in a tight range between 1.0900 and 1.0924 during the early European session and was on a downward trend at the time of writing.
The release of the unemployment data from the Eurozone did not seem to have a major impact on the currency pair as the pair rose briefly before retracing its gains and declining briefly. The unemployment data came in at 9.5% versus the expected 9.4% and the previous 9.5%. However, market sentiment towards the euro remained largely positive as the greenback remains under significant selling pressure.
Investor confidence towards the euro is quite high given that most market analysts agree that the political risk in the Eurozone has declined significantly. This is after recent opinion polls on the French presidential election indicate that Emmanuel Macron will beat Marine Le Pen in the second round scheduled for May 7.
The future performance of the currency pair is likely to be influenced by the Federal Open Market Committee meeting scheduled for tomorrow. The FOMC is expected to outline a dovish outlook and maintain its interest rate decision.
The EUR/USD was trading at 1.0912 as at 12:12 GMT having opened the day’s session trading at 1.0907. The EUR/JPY was trading at 122.53 having opened the day’s session quoted at 121.96.
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