EUR/USD Trades Sideways on ECB Speeches and Mixed US Data

The EUR/USD currency pair today traded sideways by rallying higher in the late Asian session and early European session before heading lower. The currency pair declined despite speeches from European Central Bank members, but later rallied higher on mixed US data.

The EUR/USD currency pair rallied to a high of 1.2510 in the early European session before declining to a low of 1.2461 in the mid-European session.

The currency pair rallied higher in the late Asian session as the US dollar weakened following the release of better-than-expected US CPI Data for January. The release of the EU 25 new passenger car registrations data for January by ACEA also contributed to the early rally as the print registered 7.1% growth, which was higher than the previous 4.9% contraction. Speeches by ECB members including Yves Mersch, Peter Praet and Sabine Lautenschlager had minimal impact on the pair’s performance. The Eurozone’s December trade balance released by Eurostat came in at â‚¬25.4 billion, versus the expected €27 billion and contributed to the pair’s decline.

The weak initial jobless claims data released by the Department of Labor had minimal impact on the currency pair’s consolidation phase. The US producer price index released by Bureau of Labor Statistics also had a muted impact on the pair. The Philadelphia Fed Manufacturing Business Outlook was better than expected, while US industrial production declined in January.

The currency pair’s future performance is likely to be influenced by tomorrow’s US import price index, housing starts, building permits and UoM consumer sentiment data.

The EUR/USD currency pair was trading at 1.2481 as at 15:22 GMT having declined from a high of 1.2510. The EUR/JPY currency pair was trading at 132.81 having dropped from a high of 133.27.

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