EUR/USD Rallies Higher Boosted by Strong German GDP Data and Weak US Data

The EUR/USD currency pair today rallied higher after the release of strong German GDP data followed by weak US data, which inspired the pair to rise to a three-day high. The currency pair overturned negative market sentiment around the single currency and rallied higher after the US CPI data and retail sales data failed to meet expectations.

The currency pair gained over 50 points at the height of its rally even as the US dollar, as tracked by the US Dollar Index, was significantly weaker given that the DXY was trading below its opening price of 99.63 for most of the day.

The EUR/USD pair rallied slightly higher after the release of the German GDP data by the Federal Statistical Office, which came in at an annualizd 1.7% for the first quarter of 2017. The non-seasonally adjusted German GDP data was recorded at 2.9% versus the expected 2.8%.

The pair rallied significantly higher after the release of the US CPI data by the Bureau of Labor Statistics and the retail sales data released by the Census Bureau. The annualized April CPI data came in at 2.2% versus the expected 2.3%, while the CPI data excluding food and energy was recorded at 1.9% versus the expected 2.0%. The advance retail sales data came in at 0.4% versus the expected 0.6%.

Given the lack of European economic releases on Monday, the currency pair is likely to be influenced by the release of the Eurozone GDP figures on Tuesday.

The EUR/USD was trading at 1.0919 as at 17:26 GMT having risen from a daily low of 1.0853 earlier today. The EUR/GBP was trading at 0.8481 having opened the day’s session trading at 0.8428.

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