The euro today rallied slightly higher after the release of the German IFO business climate index for June, which matched expectations. The euro opened today’s session on a downtrend even as the selling pressure on the single currency increased due to the ongoing trade tensions between the US, China and the European Union.
The EUR/USD currency pair today traded in a sideways range marked by a high of 1.1669 and a low of 1.1629, but was looking to break higher at the time of writing.
The currency pair’s slight rally was triggered by the release of the mixed German IFO data in the early European session. The German IFO expectations index surpassed consensus estimates by coming in at 98.6 versus the expected 98.0. The German IFO current assessment missed expectations by coming in at 105.1 as compared to the expected 105.6. The euro’s initial decline could also have been triggered by the latest CFTC Commitment of Traders report, which indicated that euro futures net longs had declined to levels last seen on 9 May 2017.
The US dollar’s tepid recovery during the Asian session, as tracked by the US Dollar Index, which hit a high of 94.70 today, also served to drive the pair lower. The uncertain future of global trade created by President Donald Trump‘s protectionist policies also contributed to the pair’s initial decline..
The currency pair’s short-term performance is likely to be affected by the release of US new home sales report later today.
The EUR/USD currency pair was trading at 1.1683 as at 11:44 GMT having rallied from an initial low of 1.1629. The EUR/JPY currency pair was trading at 128.01 having risen from a low of 127.25.
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