TheÂ EUR/USD currency pair today dropped significantly despite theÂ release ofÂ positive Eurozone trade balance data inÂ theÂ early European session. TheÂ currency pair reversed its decline after theÂ release ofÂ US consumer sentiment data inÂ theÂ early American session, but could not rally back toÂ its session high.
TheÂ EUR/USD currency pair traded inÂ aÂ tight range between aÂ high ofÂ 1.2346 andÂ aÂ low ofÂ 1.2306 forÂ most ofÂ today’s session.
TheÂ currency pair’s initial rally occurred inÂ theÂ early European session following theÂ release ofÂ theÂ German consumer price index data byÂ theÂ Federal Statistical Office. TheÂ final CPI data forÂ March came inÂ atÂ aÂ monthly 0.4% andÂ anÂ annualized 1.6%, which was inÂ line with expectations. Dovish comments byÂ theÂ European Central Bank Governing Council member Jan Smets regarding theÂ weak inflation inÂ theÂ Eurozone triggered theÂ pair’s decline. TheÂ release ofÂ theÂ positive Eurozone trade balance data byÂ Eurostat later inÂ theÂ session, could not reverse theÂ pair’s downtrend. TheÂ trade balance data came inÂ atÂ â¬21 billion, which was much higher than theÂ expected â¬20.2 billion.
TheÂ currency pair’s tepid recovery was triggered byÂ hawkish comments from Fed speakers, Eric Rosengren andÂ James Bullard. TheÂ release ofÂ theÂ weak University ofÂ Michigan consumer sentiment survey served toÂ boost theÂ pair’s recovery.
Given theÂ upcoming weekend, theÂ currency pair’s future performance is likely toÂ be influenced byÂ political events inÂ Europe andÂ theÂ USA.
TheÂ EUR/USD currency pair was trading atÂ 1.2325 asÂ atÂ 15:54 GMT having rallied from aÂ low ofÂ 1.2306. TheÂ EUR/JPY currency pair was trading atÂ 132.49 having dropped from aÂ high ofÂ 132.90.
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