The euro today was on a downtrend against the US dollar ignoring the release of mixed German ZEW survey data early in the European session. The single currency also did not respond to the release of positive German producer price index earlier in today’s session and continued to lose ground against the US dollar.
The EUR/USD currency pair lost about 90 points to decline from an opening high of 1.2410 to hit a low of 1.2320.
The euro was under intense selling pressure from the Asian session and the release of the German ZEW survey in the early European session had minimal impact on the single currency. The headline ZEW survey expectations came in at 17.8 beating market estimates of a 16.0 print. The ZEW survey of current conditions dropped much more than expected coming in at 92.3 as compared to the consensus estimate of 94.0. The Eurozone ZEW economic sentiment exceeded market estimates by coming in at 29.3, which was lower than the previous 31.8.
Given the lack of macro releases from the US docket, euro area releases were the main drivers behind the pair’s performance. The release of the positive German producer price index by the Federal Statistical Office could not reverse the euro’s slide.
The currency pair’s future performance is likely to be affected by tomorrow’s Markit PMI releases from across the euro area as well as the release of the FOMC minutes.
The EUR/USD currency pair was trading at 1.2342 as at 16:14 GMT having dropped from a daily high of 1.2410. The EUR/JPY currency pair was trading at 132.31 having declined from a high of 132.51.
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