Euro Falls, Rallies, Then Falls Again While Trading Against the Dollar

The euro today fell against the US dollar driven by the risk-off investor sentiment, which fueled the greenback’s resurgence coupled with Friday’s upbeat US non-farm payrolls. The EUR/USD currency pair later found support and rallied higher amid improving sentiment as investors hoped for a resolution of the impasse on the US stimulus bill in Congress.
The EUR/USD today fell from a high of 1.1801 to a low of 1.1740 before recouping most of its losses, then heading lower for a second time, and was in the red at the time of writing.
The currency pair headed lower earlier today amid rising Sino-US tensions after the US sanctioned Hong Kong leader Carrie Lam on Friday. Lam joins the growing list of Chinese officials who have been recently sanctioned by the US amid rising tensions between the two countries. The pair later recovered and rallied almost to its daily highs heading into the American session. However, the pair resumed its downtrend amid the greenback’s recovery as tracked by the US Dollar Index, which hit a high of 93.70 today.
The pair got some short-lived relief after the release of the upbeat eurozone Sentix investor confidence report for August, which came in at -13.4 versus the expected -15.2 figure. The pair’s second downtrend was driven by the release of the US JOLTS job openings report for June, which were better than expected.
The currency pair’s future performance is likely to be affected by tomorrow’s German ZEW survey data and US dollar dynamics.
The EUR/USD currency pair was trading at 1.1748 as at 18:33 GMT having fallen from a high of 1.1801. The EUR/JPY currency pair was trading at 124.45 having dropped from a high of 124.82.
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Original from: www.earnforex.com