The euro today consolidated gains made against the US dollar after the release of mixed data from the US docket in the early North American session. The euro declined against the greenback during the Asian session but reversed this trend in the early European session to rally higher.
The EUR/USD currency pair today rallied by over 75 points from a low of 1.2172 to hit a high of 1.2252 in the early American session.
The euro today had a muted reaction to mixed economic releases from the US docket such as the negative housing starts data released by the Census Bureau. Housing starts contracted by 8.2% in December to come in at 1.192 million as compared to the expected 1.7% decline. The building permits in December were slightly positive as they registered a 0.1% decline to hit 1.302 million permits, which was higher than the expected 0.6% decline. The positive initial jobless claims data released by the Department of Labor, which came in at 220,000 versus the expected 249,000, could not boost the greenback.
The weak Philadelphia Fed Manufacturing Business Outlook data negated the positive jobless claim data by coming in at 22.2 as compared to the expected 25.0 and the previous 27.9. The lack of economic releases from the Eurozone led to the euro being driven higher by investor sentiment.
The currency pair’s future performance is likely to be affected by tomorrow’s German PPI and the University of Michigan sentiment data.
The EUR/USD currency pair was trading at 1.2255 as at 15:08 GMT having rallied from a low of 1.2172. The EUR/JPY currency pair was trading at 135.91 having risen from a low 135.56.
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