TheÂ euro today held onÂ toÂ its gains inÂ theÂ American session despite theÂ release ofÂ strong US inflation data, which boosted theÂ greenback. TheÂ EUR/USD currency pair has rallied significantly higher overnight after European leaders finally reached aÂ deal onÂ Migration atÂ theÂ EU Summit.
TheÂ EUR/USD currency pair rallied from aÂ low ofÂ 1.1564 toÂ aÂ high ofÂ 1.1666 gaining over 100 points inÂ theÂ Asian session andÂ has been trading sideways since then.
TheÂ currency pair rallied higher after theÂ EU-27 leaders emerged out ofÂ aÂ nine-hour long meeting with anÂ agreement onÂ Europe’s migration problem. TheÂ deal was quite vague onÂ any specific measures toÂ be taken byÂ European governments, but seemed toÂ satisfy most parties including Angela Merkel‘s coalition partner theÂ CSU, France’s Emmanuel Macron, andÂ Italy’s Giuseppe Conte. Economic releases from across theÂ Eurozone such asÂ theÂ positive German retail sales data released byÂ theÂ Federal Statistical Office had aÂ muted impact onÂ theÂ currency pair. Other releases such asÂ theÂ upbeat German employment change report andÂ theÂ Eurozone CPI data released byÂ Eurostat, which met expectations, also had aÂ minimal impact onÂ theÂ pair.
TheÂ currency pair held onÂ toÂ most ofÂ its gains inÂ theÂ early American session despite theÂ release ofÂ positive US Personal Consumption Expenditure data byÂ theÂ Bureau ofÂ Economic Analysis. TheÂ core US PCE price index met theÂ Federal Reserve’s target ofÂ 2%.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ geopolitical events over theÂ upcoming weekend.
TheÂ EUR/USD currency pair was trading atÂ 1.1657 asÂ atÂ 14:46 GMT having rallied from aÂ daily low ofÂ 1.1564. TheÂ EUR/JPY currency pair was trading atÂ 129.06 having risen from aÂ low ofÂ 127.67.
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