Euro Rallies Higher on Market-Wide US Dollar Retracement

The euro today rallied higher against the US dollar following the market-wide selling of the US dollar, which boosted most of its peers. The EUR/USD currency pair rallied higher from the early European session despite the release of mixed data from the German docket.
The EUR/USD currency pair rallied higher from a low of 1.1550 to a high of 1.1607 in the early American session before heading lower.
The release of the German trade balance data for June by the Federal Statistical Office in the early European session boosted the currency pair. The trade balance data came in at €21.8 billion beating the consensus estimate of €20.8 billion and the previous figure of €19.6 billion. The German current account data came in at €26.2 billion versus the expected €21.2 billion. German exports remained flat while imports grew by 1.2% also boosting the pair. However, the German industrial production data contracted by 0.9%, which was higher than the expected 0.5% contraction. The industrial production data translated into an annualized 2.5% versus the expected 3.0% print, which dragged the pair lower.
The currency pair retraced some of its gains following the release of the positive US JOLTS job openings data by the Bureau of Labor Statistics. The lack of major economic releases from the US docket meant that the pair was very susceptible to the US-China trade tensions.
The currency pair’s future performance is likely to be influenced by geopolitical events given tomorrow’s empty US and European dockets.
The EUR/USD currency pair was trading at 1.1591 as at 15:06 GMT having dropped from a high of 1.1607. The EUR/JPY currency pair was trading at 128.91 having rallied from a low of 128.58.

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