TheÂ euro today rallied higher against theÂ US dollar after it was confirmed that theÂ European Central Bank was considering ending its massive quantitative easing program. TheÂ news confirmed aÂ report that was circulating onÂ Tuesday about theÂ possibility ofÂ such action byÂ theÂ ECB.
TheÂ EUR/USD currency pair today rallied byÂ over 65 points from aÂ low ofÂ 1.1712 toÂ aÂ high ofÂ 1.1780 after theÂ ECB news broke.
TheÂ currency pair’s rally was triggered byÂ theÂ ECB Chief Economist Peter Praet‘s admission that theÂ institution was set toÂ discuss ways ofÂ ending its QE program. He also confirmed that theÂ ECB is likely toÂ maintain rates atÂ their current levels forÂ theÂ foreseeable future. TheÂ release ofÂ theÂ Markit Germany Construction PMI forÂ May also boosted theÂ euro asÂ it came inÂ atÂ 53.9, which was higher than theÂ previous 50.9. TheÂ Markit Germany Retail PMI also surprised toÂ theÂ upside byÂ coming inÂ atÂ 55.5 versus theÂ previous 51.0. TheÂ Markit Eurozone Retail PMI also recorded positive growth byÂ coming inÂ atÂ 51.7 asÂ compared toÂ theÂ previous 48.6.
TheÂ currency pair’s rally was further boosted byÂ theÂ weaker greenback asÂ tracked byÂ theÂ US Dollar Index, which hit aÂ low ofÂ 93.58 today. TheÂ greenback was weighed down byÂ concerns regarding theÂ possibility ofÂ aÂ full-scale global trade war pitting theÂ world’s major economies against theÂ USA.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ theÂ release ofÂ theÂ US trade balance data scheduled forÂ later today.
TheÂ EUR/USD currency pair was trading atÂ 1.1771 asÂ atÂ 11:48 GMT having rallied from aÂ low ofÂ 1.1712. TheÂ EUR/JPY currency pair was trading atÂ 129.72 having risen from aÂ low ofÂ 128.71.
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