The euro today rallied higher following the release of the German IFO survey in the early European session, which beat expectations slightly. The pair’s upside was largely limited by the impending trade talks between the USA and the European Union delegation in Washington scheduled for later today.
The EUR/USD currency pair today traded in a tight range marked with a high of 1.1705 and a low of 1.1674.
The currency pair’s slight rally was triggered by the release of the German IFO business climate survey which beat expectations. The business climate survey came in at 101.7, which was slightly higher than the expected 101.5, but lower than the previous figure of 101.8. The German IFO expectations and current assessment also beat consensus estimates. However, the price action in the currency pair is largely subject to the trade talks set to happen later today between US President Donald Trump and his EU counterpart Jean-Claude Juncker.
President Trump asserted earlier that he would like the US and the EU to drop all tariffs that exist between them. However, Trump also tweeted that tariffs are the greatest, just hours before the scheduled meeting, while the EU has indicated that it will retaliate with tariffs on US imports worth about $20 billion.
The currency pair’s short-term performance is likely to be influenced by Jean Claude Junker’s keynote speech on EU-US relations scheduled for 20:00 GMT today.
The EUR/USD currency pair was trading at 1.1703 as at 13:02 GMT having rallied from a daily low of 1.1674. The EUR/JPY currency pair was trading at 129.92 having dropped from a high of 130.19.
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