The euro today rallied higher against the US dollar despite the release of positive US advance retail sales data in the early American session. The single currency was on an uptrend against the greenback from the early European session following a resurgence in the selling pressure on the greenback.
The EUR/USD currency pair today gained over 68 points to rally from a low of 1.2323 to a high of 1.2394 in the early American session.
The euro’s rally against the US dollar lacked any fundamental drivers except for the release of the German wholesale price index by the Federal Statistical Office in the early European session. German wholesale prices remained stagnant in March recording 0.0% growth, while maintaining the annualized growth rate of 1.2%. The pair’s rally could also be attributed to the weakening of the greenback as tracked by the US Dollar Index, which hit a low of 89.39 earlier today. The Commitments of Traders report released by the CFTC on Friday could have also contributed to the rally.
The release of the advance US retail sales data by the Census Bureau had a muted impact on the currency pair. The advance retail sales grew by 0.6% in March, which was higher than the expected 0.4% growth rate. The Empire State Manufacturing Index released by the Federal Reserve Bank of New York also came in below expectations.
The currency pair’s future performance is likely to be affected by tomorrow’s German ZEW survey data, and the US housing starts data.
The EUR/USD currency pair was trading at 1.2373 as at 16:06 GMT having rallied from a low of 1.2323. The EUR/JPY currency pair was trading at 132.70 having risen from a low of 132.10.
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