The EUR/USD currency pair rallied higher today given the weaker US dollar as tracked by the US Dollar Index and the stronger euro. The currency pair rallied higher as the US NAHB housing market index and the Empire State manufacturing survey both registered disappointing figures.
The currency pair gained over 50 points at the height of its rally and climbed steadily throughout the European and the early American session.
The weaker US dollar was the main trigger for the currency pair’s rally given the disappointing US advance retail sales and CPI figures that were announced last week. The US Empire State manufacturing survey released earlier today came in at a disappointing 5.2 versus the expected 15. The NAHB housing market index was also recorded at 68, which was lower than the market expectation of 70.
US bond yields registered a slight improvement during the early American session, but this was not reflected in the US dollar. The euro has demonstrated strength against the greenback since last week given that it did not lose much ground against the greenback. Although economic releases from the Eurozone continue to exceed expectations, this has declined slightly as measured by the Citigroup Economic Surprise Index.
Comments from Fed Vice Chair Stanley Fischer, scheduled for later today, might boost the weak US dollar, while the release of the final figures for the March Eurozone Consumer Price Index on Wednesday might lift the euro.
The EUR/USD was trading at 1.0658 as at 16:01 GMT having opened the day’s session trading at 1.0617. The GBP/USD was trading at 1.2587 having opened the day’s session trading at 1.2534.
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