Euro Plunges Against Buoyant Dollar on Upbeat US Retail Sales and PPI Data

The euro fell against the resurgent dollar buoyed by rising US Treasury yields and upbeat US retail sales figures amid a mostly empty European docket. The EUR/USD currency pair was under intense selling pressure for the second consecutive day after hitting 3-week highs largely driven by the dollar.
The EUR/USD currency pair fell from a high of 1.2097 in the Asian market to a low of 1.2027 after the American releases and was trading near these lows at the time of writing.
The currency pair’s decline was fueled by the resurgent dollar as tracked by the US Dollar Index, which hit a high of 91.05 today. The lack of meaningful releases from the European docket left the pair at the mercy of investor sentiment and the dollar. The release of the eurozone construction output report for December by Eurostat had a muted impact on the single currency. The European Commission’s announcement that they had purchased 300 million Moderna vaccines for EU member states barely moved the euro. The commission said that it could donate the vaccines to lower and middle-income countries.
The fibre extended its losses during the American session after the release of the US retail sales data for January by the Census Bureau. US retail sales grew by 5.3% beating analysts expectations set at 1.1%. The upbeat US producer price index report released by the Bureau of Labor Statistics also fueled the pair’s losses.
The currency pair’s future performance is likely to be affected by today’s Fed meeting minutes and tomorrow’s ECB meeting minutes.
The EUR/USD currency pair was trading at 1.2034 at 16:34 GMT after falling from a high of 1.2097. The EUR/JPY currency pair was trading at 127.38 having dropped from a high of 128.35.
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Original from: www.earnforex.com