TheÂ euro today rallied slightly higher against theÂ US dollar following theÂ ECB President, Mario Draghi‘s speech atÂ anÂ event inÂ Frankfurt. TheÂ euro kept rising after theÂ release ofÂ theÂ US Consumer Price Index data despite theÂ core inflation print being inÂ line with expectations.
TheÂ EUR/USD currency pair today gained over 40 points toÂ rally from aÂ low ofÂ 1.2352 toÂ trade atÂ aÂ high ofÂ 1.2396 atÂ theÂ time ofÂ writing.
TheÂ currency pair was onÂ anÂ uptrend from theÂ Asian session due toÂ positive investor sentiment towards theÂ single currency. Mario Draghi’s comments atÂ theÂ Generation â¬uro Studentsâ Award Ceremony inÂ Frankfurt reiterated his confidence that theÂ Eurozone inflation rate would rise toÂ meet theÂ European Central Bank‘s target. He also stated that theÂ impact ofÂ US tariffs onÂ theÂ Eurozone was not big, but that retaliatory measures byÂ theÂ bloc were theÂ main issue. Draghi’s comments were largely interpreted as hawkish.
TheÂ release ofÂ theÂ US CPI data byÂ theÂ Bureau ofÂ Labor Statistics inÂ theÂ early American session had minimal impact onÂ theÂ pair. TheÂ core CPI print met expectations byÂ coming inÂ atÂ 0.2% inÂ March, which translates toÂ anÂ annualized 2.1%. TheÂ headline inflation declined byÂ 0.1% inÂ March, but came inÂ atÂ anÂ annualized 2.4%. Real average hourly earnings also increased byÂ 0.4%.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ theÂ release ofÂ theÂ latest FOMC minutes andÂ theÂ US budget report, both scheduled forÂ later today.
TheÂ EUR/USD currency pair was trading atÂ 1.2376 asÂ atÂ 14:36 GMT having risen from aÂ low ofÂ 1.2352. TheÂ EUR/JPY currency pair was trading atÂ 132.32 having dropped from aÂ high ofÂ 132.60.
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