The euro today traded at 13-month lows as it was driven lower by market volatility in emerging markets led by Turkey resulting in a strong US dollar. The EUR/USD currency pair traded lower due to the selloff in emerging market currencies, which increased the demand for the greenback at the expense of its peers including the euro.
The EUR/USD currency pair hit a low of 1.1307 in the American session, a figure last witnessed in June 2017, having dropped from a high of 1.1347.
The lack of any major releases from the European docket today meant that the euro was highly susceptible to market sentiment. The ongoing crisis in Turkey continued to dominate market sentiment as investors fled the riskier currencies including the euro in favor of the US dollar. Investor sentiment was further dampened by the existing trade tension between the US and its major trading partners including China and the European Union. The selloff in other emerging market currencies such as the South African rand, the Russian ruble and the Mexican peso also drove the currency pair lower.
The currency pair rallied higher rallied slightly after the release of upbeat US advance retail sales figures by the Census Bureau before heading lower. The positive non-farm productivity report and Empire state manufacturing data both had a muted impact on the currency pair.
The currency pair’s future performance is likely to be affected by tomorrow’s Eurozone trade balance data and the US initial jobless claims data.
The EUR/USD currency pair was trading at 1.1312 as at 13:06 GMT having dropped from a high of 1.1347. The EUR/JPY currency pair was trading at 125.41 having declined from a high of 126.38.
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Euro Trades at 13-Month Lows on High Market Volatility
