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