The euro fell to new 2021 lows against the dollar despite the release of upbeat macro reports from across the euro area as investor sentiment remained bearish. The EUR/USD currency pair’s decline was fueled by the dollar’s overall strength buoyed by the rising real US 10-year Treasury yields that lifted the world’s reserve currency.
The EUR/USD currency pair fell from a high of 1.1773 in the Australian session to a low of 1.1711 in the American market and was trading near these lows at the time of writing.
The currency pair’s decline was fueled by the rising US Treasury yields that lifted the dollar as tracked by the US Dollar Index. The release of the upbeat German import price index for February had a muted impact on the pair. According to the Federal Statistical Office, Germany’s import prices rose 1.7% versus consensus estimates of 1.3%. The upbeat Spanish HICP inflation rate rose to 1.9% from -0.6% in February but could not lift the pair. The positive eurozone business climate and the economic sentiment indicators released by the European Commission barely moved the pair despite beating analysts’ expectations. The in-line German preliminary consumer price index report for March also had a minimal impact on the pair.
The fibre extended its losses during the American session after the release of the positive US Consumer Confidence report for March. According to the Conference Board, US consumer confidence jumped to 109.7 in March, beating consensus estimates.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple euro area inflation reports and German unemployment data.
The EUR/USD currency pair was trading at 1.1720 at 19:23 GMT after dropping from a high of 1.1773. The EUR/JPY currency pair was trading at 129.31, having fallen from a high of 129.54.
© SimonMugo for Forex News, 2021. |
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Post tags: Business Climate Indicator, Conference Board, Consumer Confidence, EUR/JPY, EUR/USD, European Commission, Eurozone, Federal Statistical Office, Import Prices, Inflation, Investor Sentiment, Treasuries
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