Euro Fails to Hold On to New 2-Year Highs Hit Against the Dollar

The euro today traded lower against the US dollar after hitting new 2-year highs last seen in May 2018 earlier in the session to trade almost flat for the session. The EUR/USD currency pair broke above the crucial 1.1900 level but could not stay above the level and fell back as the bears took control of the price action.
The EUR/USD currency pair today spiked to a high of 1.1915 before reversing and falling to a low of 1.1818 and then recouping its losses to trade slightly higher for the day at the time of writing.
The currency pair once again attempted to break convincingly above the 1.1900 level as investor sentiment was not overly bullish. The pair’s spike coincided with the release of the upbeat German factory orders report for June, which was better than expected. According to the Federal Statistical Office, Germany’s factory orders expanded 27.9% in June beating analysts’ estimate of a 10.1% increase. The release of the Italian industrial output data for June by Istat despite the print beating consensus estimates.
The currency pair’s price action mirrored the action in the greenback as tracked by the US Dollar Index, which hit a low of 92.52 today. The release of upbeat US initial jobless claims data by the Department of Labor, which came in at 1.18 million versus the expected 1.41 million.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple trade balance reports from the euro area.
The EUR/USD currency pair was trading at 1.1876 as at 20:38 GMT, having rallied from a low of 1.1817. The EUR/JPY currency pair was trading at 125.34, having risen from a low of 124.66.
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Original from: www.earnforex.com