TheÂ euro today rallied slightly higher after Ewald Nowotny, anÂ ECB governing council member, stated that theÂ bank should capitalize onÂ theÂ opportunity toÂ normalize its policies soonest possible. TheÂ EUR/USD currency pair had aÂ muted reaction toÂ theÂ release ofÂ theÂ final Eurozone CPI data early inÂ theÂ European session despite theÂ print being inÂ line with expectations.
TheÂ EUR/USD currency pair today rallied slightly from aÂ low ofÂ 1.1544 toÂ aÂ high ofÂ 1.1615, but could not recover from yesterday’s massive plunge.
TheÂ currency pair rallied briefly higher after Nowotny’s comments, which appeared hawkish following yesterday’s dovish stance taken byÂ theÂ European Central Bank inÂ relation toÂ raising interest rates. TheÂ currency pair had aÂ muted reaction toÂ theÂ release ofÂ theÂ latest Eurozone CPI data byÂ Eurostat earlier today. TheÂ final headline CPI print came inÂ atÂ 0.5% inÂ May translating into anÂ annualized 1.9%; both prints met expectations. TheÂ core CPI print also met earlier estimates byÂ coming inÂ atÂ anÂ annualized 1.1%. TheÂ Eurozone trade balance data released today missed expectations byÂ coming inÂ atÂ â¬16.7 billion versus theÂ previous â¬26.9 billion.
AÂ slight retracement byÂ theÂ US dollar due toÂ theÂ trade tensions between theÂ USA andÂ China also contributed toÂ theÂ pair’s slight rally. TheÂ US Dollar Index, which tracks theÂ greenback’s performance, today hit aÂ low ofÂ 94.67.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ theÂ University ofÂ Michigan consumer survey due forÂ release later today.
TheÂ EUR/USD currency pair was trading atÂ 1.1599 asÂ atÂ 11:45 GMT having rallied from aÂ low ofÂ 1.1544. TheÂ EUR/JPY currency pair was trading atÂ 128.37 having risen from aÂ low ofÂ 127.70.
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