The euro today declined against the US dollar amid growing fears regarding the risks posed by emerging markets and the trade war being spearheaded by the USA. The EUR/USD currency pair fell after the release of weak eurozone inflation figures and the Trump administration’s rejection of the EU’s offer on auto tariffs.
The EUR/USD currency pair today declined from a high of 1.1689 to a low of 1.1642 due to the above factors.
The currency pair’s decline was initially triggered by Donald Trump‘s rejection of the new offer presented by the European Union Trade Commissioner Cecilia Malmstrom to scrap auto tariffs. Trump stated that the deal was not good enough and that the EU was just as bad as China. The release of the German retail sales data by the Federal Statistical Office also contributed to the decline as the print came in at an annualized 0.8%, which was lower than the expected 1.3%. The release of the eurozone unemployment rate by Eurostat earlier today had a muted impact on the currency pair despite the print meeting consensus estimates set at 8.2%.
The release of the eurozone consumer price index data for August drove the pair lower as the core CPI came in at 1.0% versus the expected 1.1%. The headline CPI print came in at 2.0% missing expectations by 0.1%.
The currency pair’s short-term performance is likely to be influenced by the release of the University of Michigan consumer sentiment survey later today.
The EUR/USD currency pair was trading at 1.1650 as at 11:59 GMT having dropped from a high of 1.1689. The EUR/JPY currency pair was trading at 129.07 having declined from a high of 129.84.
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