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Yesterday, for the third successive session, the euro declined against the greenback, mainly due to the weak business confidence data released by the European Commission. The EUR/USD currency pair’s decline was fueled by the weak German inflation data. But for the weak US home sales data, the euro would have seen huge losses against the US dollar. From a high of 1.1260, the EUR/USD pair has declined to a low of 1.1210. At the time of writing the article, the pair was trading near 1.1230.
Economic data dominates the euro movement
Yesterday, the EUR/USD pair remained range bound due to an uncertain trading environment in the Asian session. However, the currency pair suddenly drifted lower at the beginning of the European session due to heavy selling pressure, before reversing sharply to regain its lost ground. However, the rally had no follow through, as the pair dropped after the announcement of the eurozone business climate indicator data that missed economists’ anticipation as did the index of economic sentiment. The final consumer confidence data was consistent with analysts’ anticipations but was still below February’s print.
The announcement of the US GDP info by the Bureau of Economic Analysis had a subdued effect on the tumbling pair, even though the figures missed economists’ forecast.
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