The euro today traded in a stable rage against the US dollar as investors revised their expectations of a rate hike by the ECB. The single currency was not appealing to investors who have had to deal with weak data releases from the eurozone and a dovish European Central Bank.
The EUR/USD currency pair today traded in range marked by a high of 1.1409 and a low of 1.1385, but was attempting to break higher at the time of writing.
The currency pair has been trading directionless for the past two days largely due to the low volatility witnessed in the financial markets. The release of a poll by Reuters indicated that most analysts have revised their expectations of a rate hike by the ECB from Q3 this year to Q4. There are also other analysts who have completely ruled out the possibility of an ECB rate hike this year. The release of the eurozone current account data for November also did not help the euro. According to the ECB, the current account stood at â¬20.3 billion versus the expected â¬24.1 billion, which worried investors.
The stronger US dollar as tracked by the US Dollar Index, which hit a high of 96.13 today, also stalled the pair’s rally. The low volatility conditions in the market also limited the currency pair’s movement.
The pair’s short-term performance could be affected by the release of US industrial production data and the UoM consumer sentiment survey later today.
The EUR/USD currency pair was trading at 1.1405 as at 10:57 GMT having risen from a low of 1.1385. The EUR/JPY currency pair was trading at 124.76 having rallied from a low of 124.29.
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Euro Stabilizes as Investors Revise Their Expectations of an ECB Rate Hike
