The euro today rallied higher against the US dollar despite the release of weak German factory orders for April in the early European session. The euro’s rally was further boosted by the weak US dollar even as investors turned bullish on the single currency, and sold the greenback.
The EUR/USD currency pair today rallied from a low of 1.1781 to a high of 1.1840 gaining over 55 points despite the mixed Eurozone data.
The currency pair rallied higher as investors priced-in the news that the European Central Bank would discuss exiting its quantitative easing program at its upcoming meeting. The release of the weak German factory orders for April by the Federal Statistical Office could not reverse the pair’s steady rise. The factory orders contracted by an annualized 0.1% and a monthly 2.5%. The final Eurozone GDP print for the first quarter as released by Eurostat met expectations set at an annualized 2.5% and a quarterly 0.4%, but was not the basis for the pair’s rally. Eurozone government expenditure did not expand in the first quarter, which limited the pair’s rally.
The US dollar was weighed down by trade concerns for most of today’s session. The release of the higher-than-expected initial jobless claims data by the US Department of Labor had a muted impact on the currency pair.
The currency pair’s future performance is likely to be affected by tomorrow’s German trade balance report and industrial production data.
The EUR/USD currency pair was trading at 1.1815 as at 14:05 GMT having rallied from a low of 1.1781. The EUR/JPY currency pair was trading at 129.97 having risen from a low of 129.52.
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