EUR/USD Trades in a Tight Range on Both Eurozone and US Data

The EUR/USD currency pair today traded in a tight range from the early European session following the release of mixed Eurozone data. The currency pair remained stable during the American session following several US releases such as the ADP employment change data.

The EUR/USD currency pair today traded in a 58-point range between a high of 1.2314 and a low of 1.2256.

The core Eurozone CPI print released by Eurostat early in the European session missed expectations by coming in at an annualized 1.0% in March versus the expected 1.1%, thereby contributing to the pair’s decline.The release of the Eurozone unemployment rate for February by Eurostat could also have contributed to the pair’s decline. The unemployment rate met expectations by coming in at 8.5%. The headline CPI estimate for March was recorded at 1.4%, which was also in line with expectations.

The currency pair inched slightly higher following the release of US ADP employment change report in the early North American session. The US private sector added 241,000 jobs as compared to the expected 210,000 new jobs. The release of the ISM Non-Manufacturing/Services PMI later in the session had a muted impact on the currency pair despite coming in at 58.8, which was slightly lower than the expected 59.0.

The currency pair’s future performance is likely to be affected by tomorrow’s Eurozone Markit releases and the US jobless claims and trade balance data. The pair’s downside is also likely to be limited by the ongoing trade war between China and the USA.

The EUR/USD currency pair was trading at 1.2293 as at 17:02 GMT having dropped from a high of 1.2314. The EUR/JPY currency pair was trading at 130.99 having rallied from a low of 130.21.

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