TheÂ EUR/USD currency pair was inÂ aÂ consolidative phase during theÂ Asian session even asÂ US Treasury yields hit new highs overnight andÂ theÂ greenback rally lost some momentum. TheÂ release ofÂ theÂ German wholesale price index inÂ theÂ early European session was one ofÂ theÂ triggers behind theÂ currency pair’s decline asÂ theÂ euro weakened against theÂ US dollar.
TheÂ EUR/USD currency pair was trading between aÂ high ofÂ 1.1821 andÂ aÂ low ofÂ 1.1775, but had recovered slightly atÂ theÂ time ofÂ writing.
TheÂ euro broke its consolidative trend inÂ theÂ early European session after theÂ Federal Statistical Office released Germany’s wholesale price index forÂ April. TheÂ wholesale prices rose byÂ aÂ monthly 0.5% andÂ anÂ annualized 1.4%, which was higher than previous levels. TheÂ German producer price index also contributed toÂ theÂ initial decline byÂ coming inÂ atÂ 2% YoY. TheÂ release ofÂ theÂ mixed Eurozone current account data byÂ Eurostat also contributed toÂ theÂ pair’s decline. TheÂ Eurozone trade balance data, which came inÂ atÂ â¬26.9 billion, could not reverse theÂ pair’s decline.
TheÂ euro held its ground against theÂ US dollar overnight even asÂ US 10-year Treasury yields hit aÂ high ofÂ 3.13%. TheÂ US Dollar Index, which tracks theÂ greenback’s performance, also retraced some ofÂ yesterday’s gains toÂ hit aÂ low ofÂ 93.34 even asÂ Treasury yields declined.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ speeches from theÂ Fed’s Lael Brainard andÂ Robert Kaplan given today’s empty US docket.
TheÂ EUR/USD currency pair was trading atÂ 1.1780 asÂ atÂ 11:11 GMT having dropped from aÂ high ofÂ 1.1821. TheÂ EUR/JPY currency pair was trading atÂ 130.77 having declined from aÂ high ofÂ 131.11.
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