The euro today rallied higher against the US dollar capitalising on the greenback’s overall weakness since yesterday’s speech by the Fed Chair. The EUR/USD currency pair also benefitted from the upbeat macro releases from across the euro area, which lent support to the single currency today.
The EUR/USD currency pair today rallied from a low of 1.1811 at the start of the Asian session to a high of 1.1919 in the mid-European market before giving up part of its gains.
The currency pair’s rally was boosted by the upbeat German import price index report for July released by the Federal Statistical Office. However, the downbeat German GfK consumer sentiment survey for September limited the pair’s initial gains as the print came in at -1.8 versus the expected 1.2. The positive French consumer price index report for August released by Insee also fueled the pair’s rally. The inflation print was recorded at -0.1%, beating analysts estimates of -0.2%. The inline French Q2 GDP report, which came in at -13.8%, had a muted impact on the pair.
The pair fell after the release of the weak eurozone business climate indicator combined with the inline consumer confidence print. However, the economic sentiment indicator was better than expected. The upbeat US PCE data and the University of Michigan consumer sentiment index for August had a minimal impact on the pair.
The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events and US dollar dynamics.
The EUR/USD currency pair was trading at 1.1884 as at 18:53 GMT, having rallied from a low of 1.1811. The EUR/JPY currency pair was trading at 125.34, having fallen from a high of 126.78.
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