The EUR/USD currency pair’s drop happened at a significant resistance level as traders stepped in, forcing the pair to its daily lows buoyed by the low German data.
The EUR/USD currency pair yesterday returned to a high of 1.1781 in the early Frankfurt session before declining to a low of 1.1733 in the first American market. However, they were above these lows at the time of reporting.
The euro’s original rally was run by investor optimism that President Donald Trump and Nancy Pelosi would agree on an incentive bill before the November 3 election after Trump declared that the talks were back on. The release of the disappointing German trade balance report for August added to the pair’s drop. As reported by the Federal Statistical Office, Germany’s trade surplusage befell to 15.7 billion upon the expected 18.2 billion print.
The statement of the European Central Bank minutes of the latest Governing Council monetary policy conference unveiled that the bank was watching the euro’s exchange rate.
The release of the US initial unemployment claims report in the early American session pushed the EUR/USD pair to its daily lows
As stated by the Department of Labor, new lay-off claims slumped to 840,000, increasing the dollar as followed by the US Dollar Index.
The currency pair’s expected performance is possible to be influenced by US dollar dynamics given today’s empty European dockets.
The EUR/USD currency pair was trading at 1.1753 as at 16:50 GMT, having slumped from a high of 1.1781. The EUR/JPY currency pair was trading at 124.58, having collapsed from a high of 124.87.