Europe’s single currency lost its footing against the greenback in yesterday’s sessions. The USD remained stubbornly strong as the tension between Beijing and Washington continues.
The EUR/USD pair edged up 0.03% or 0.0004 points yesterday. The pair traded around ranges between $1.1071 and $1.1089 in sessions.
The US Dollar Index slightly edged up 0.02% or 0.02 points in Tuesday’s trading. Experts say that the dollar’s strength is due to the ongoing trade conflict between the United States and China.
Other trading pairs of the US dollar and the euro had gone in different directions. The NZD/USD pair dipped 0.04% or 0.0003 points in the session.
The NZD exchanged with the USD for $0.6406 and has hit a range from $0.6403 to $0.6429.
The GBP/USD trading pair slipped 0.19% or 0.0023 points yesterday. The pair reached levels between $1.2084 and $1.2139 in Tuesday’s trading.
Meanwhile, the AUD/USD ran in the opposite direction. The exchange pair gained 0.19% or 0.0013 points and has traded around $0.6775.
Aside from the US dollar, the euro also lost against the pound sterling in sessions. The EUR/GBP pair went up 0.29% or 0.0027 in yesterday’s sessions. The pair traded in ranges between £0.9129 and £0.9168.
What’s Next for the Euro?
The weakness of the euro was traced from the latest German data and a warning from its central bank.
The biggest economy and the industrial powerhouse of the Eurozone, Germany, saw a decline in their economy.
Germany’s economy slipped by 0.1% in the second quarter of the year. The report was released on Monday this week. It is also the reason for the warning of the Bundesbank.
Germany’s central bank warned about the possibility of a recession that could push the ECB to release new stimulus.
According to the Bundesbank, the economic rate could continue to slow down for the third quarter due to the falling industrial sector.
If the German data continues to drop, the euro could continue to struggle in the coming sessions.