The EUR/USD touched a fresh weekly high in overnight trading, breaking above the 1.1600 level. Once again, however, the Euro failed to hold its gains and opens this morning at 1.1529. Mostly supported by US Dollar weakness, the Euro couldn’t find the momentum domestically to maintain its gains as softer data releases and a mixed Brexit conspired to dampen the EUR/USD currency pair.
Better market sentiment buoyed the Euro as the US Dollar weakened across the board. Well supported initially from the declines in its counterpart, Fiber turned to the German ZEW survey for some domestic motivation. Ultimately the study showed a sharp deterioration in business sentiment in Germany which didn’t help the Euro’s fortunes. The Union also released its trade balance figures for August with showed a seasonally adjusted gain of €16.6B, a definite increase when compared to July’s reading but already widely expected.
Moving into Wednesday, the Euro looks to its September CPI reading which all came in line with expectations. Eurozone construction output YoY for August increased 2.5% while monthly a decrease of -0.5% was seen. Market participants will look for news from the EU economic summit for further direction in the euro.