Earlier today, theÂ euro dropped toÂ new weekly lows following theÂ release ofÂ theÂ minutes ofÂ theÂ European Central Bank‘s latest Governing Council meeting. TheÂ single currency headed lower despite theÂ release ofÂ positive German inflation data, but rallied higher inÂ theÂ American session following theÂ release ofÂ US CPI data.
TheÂ EUR/USD currency pair today dropped from aÂ high ofÂ 1.1693 toÂ aÂ low ofÂ 1.1649, but later retraced most ofÂ its losses.
TheÂ currency pair was inÂ aÂ consolidative trend during theÂ Asian session, but headed lower inÂ theÂ early European session following theÂ release ofÂ German Consumer Price Index data. TheÂ German CPI data released byÂ theÂ Federal Statistical Office was inÂ line with expectations, which seemed toÂ disappoint most investors. TheÂ Eurozone industrial production data released byÂ Eurostat beat expectations byÂ aÂ 0.1% margin byÂ coming inÂ atÂ aÂ monthly 1.3% andÂ anÂ annualized 2.4%, but could not lift theÂ pair. TheÂ ECB monetary policy minutes dragged theÂ pair lower asÂ it revealed that ECB Governing Council members were split onÂ theÂ timing ofÂ theÂ first rate hike scheduled forÂ summer 2019.
TheÂ release ofÂ theÂ US CPI data byÂ theÂ Bureau ofÂ Labor Statistics contributed toÂ theÂ pair’s rally inÂ theÂ American session asÂ it weakened theÂ greenback. TheÂ positive initial jobless claims data released byÂ theÂ Department ofÂ Labor could not stop theÂ pair’s rally.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ geopolitical events andÂ tomorrow’s University ofÂ Michigan consumer sentiment survey.
TheÂ EUR/USD currency pair was trading atÂ 1.1690 asÂ atÂ 16:01 GMT having risen from anÂ intra-day low ofÂ 1.1649. TheÂ EUR/JPY currency pair was trading atÂ 131.42 having rallied from aÂ low ofÂ 130.71.
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