TheÂ EUR/USD currency pair today rallied from aÂ new 2018 low set inÂ theÂ late Asian session based onÂ improved investor sentiment towards theÂ single currency. TheÂ currency pair’s rebound from its lowest levels since December 22 could have been triggered byÂ technically oversold levels, which led toÂ widespread short-covering trades.
TheÂ EUR/USD currency pair today rallied from aÂ low ofÂ 1.1822 toÂ aÂ high ofÂ 1.1895 before giving up some ofÂ its gains toÂ trade almost flat atÂ theÂ time ofÂ writing.
TheÂ softer recent European economic releases continued toÂ weaken theÂ euro with today’s releases further applying downward pressure. TheÂ disappointing Italian retail sales data andÂ theÂ weak French industrial production data released today contributed toÂ theÂ euro’s weakness. TheÂ pair’s initial recovery could be attributed toÂ improved investor sentiment towards theÂ euro following President Donald Trump‘s withdrawal from theÂ Iran nuclear deal. TheÂ lack ofÂ major releases from theÂ European docket also contributed toÂ theÂ pair’s decline.
TheÂ release ofÂ theÂ weak US Producer Price Index data forÂ April byÂ theÂ Bureau ofÂ Labor StatisticsÂ inÂ theÂ early American session further boosted theÂ currency pair. TheÂ PPI rose byÂ aÂ monthly 0.1% andÂ anÂ annualized 2.6%; both prints missed expectations. TheÂ core PPI print also missed consensus estimates asÂ it rose byÂ 0.2% inÂ April culminating inÂ anÂ annualized 2.3% print.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ tomorrow’s European Central Bank economic bulletin andÂ US consumer price index data.
TheÂ EUR/USD currency pair was trading atÂ 1.1852 asÂ atÂ 15:59 GMT having declined from aÂ daily high ofÂ 1.1895. TheÂ EUR/JPY currency pair was trading atÂ 129.99 having rallied from aÂ low ofÂ 129.36.
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