TheÂ euro today rallied higher against theÂ US dollar despite theÂ release ofÂ disappointing German inflation data inÂ theÂ mid-European session. TheÂ EUR/USD currency pair broke out ofÂ theÂ consolidative pattern that dominated theÂ Asian session due toÂ positive investor sentiment towards theÂ single currency.
TheÂ EUR/USD currency pair today rallied from anÂ initial low ofÂ 1.1646 toÂ aÂ high ofÂ 1.1710 inÂ theÂ early American session.
TheÂ currency pair’s bid tone today was largely influenced byÂ theÂ positive investor sentiment towards theÂ euro asÂ evidenced byÂ theÂ higher net euro longs inÂ theÂ latest Commitment ofÂ Traders report. TheÂ Commodity Futures Trading Commission stated that euro longs hit 3-week highs inÂ theÂ week ended July 24 reversing aÂ 2-week losing trend. TheÂ release ofÂ theÂ Eurozone business climate andÂ economic confidence reports byÂ theÂ European Commission earlier today also boosted theÂ pair. TheÂ economic sentiment indicator came inÂ atÂ 112.1 beating expectations byÂ 0.1 points, while theÂ business climate indicator decreased byÂ 0.09 points toÂ come inÂ atÂ 1.29 missing expectations.
TheÂ release ofÂ theÂ German consumer price index report byÂ theÂ Federal Statistical Office had aÂ muted impact onÂ theÂ pair asÂ it was recorded atÂ aÂ monthly 0.3% andÂ anÂ annualized 2.0%; both prints missed expectations byÂ 0.1%. TheÂ release ofÂ theÂ positive US pending home sales data later today triggered aÂ slight pullback inÂ theÂ currency pair.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ tomorrow’s German unemployment data andÂ Eurozone GDP andÂ CPI data.
TheÂ EUR/USD currency pair was trading atÂ 1.1709 asÂ atÂ 14:50 GMT having rallied from aÂ daily low ofÂ 1.1646. TheÂ EUR/JPY currency pair was trading atÂ 129.94 having risen from aÂ low ofÂ 129.30.
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