Market News

EUR/USD plummets to multi-month lows near 1.1270

The EUR/USD pair extended its daily decline in the NA session and touched its lowest level since late November at 1.1267. As of writing, the pair was trading at 1.1271, losing 0.5% on a daily basis.

Since the sharp fall it suffered after the FOMC’s dovish shift on January 30th, the US Dollar Index, which tracks the greenback against a basket of six major currencies, closed every single trading day in the positive territory and preserved its bullish momentum for the eighth straight day on Monday. Although there were no macroeconomic data releases from the U.S. today, a more-than-1% jump seen in the 10-year Treasury Bond yield allowed the DXY to extend its rally to its highest level of 2019 at 97.12. The index was last up 0.47% on a daily basis at 97.10.

Meanwhile, commenting on the euro area’s economic performance, Eurogroup head Mario Centeno at today’s Eurogroup meeting said that the slowdown was mainly caused by political risks while adding that the eurozone fundamentals were stronger than before the crisis. Nevertheless, the shared currency largely ignored these comments and the USD’s market valuation continued to drive the pair’s price action.

The next data of relevance for the euro will be Wednesday’s eurozone industrial production report, which is expected to show a contraction of 0.4% on a monthly basis in December.