The euro today dropped from 2-week highs against the US dollar as the greenback rallied higher from the early European session to recoup most of yesterday’s losses. The EUR/USD currency pair rallied slightly after the release of positive German inflation data, but could not sustain its rally due to the resurgent greenback.
The EUR/USD currency pair today dropped from an Asian session high of 1.1610 to a low of 1.1533 in the early American session, but had recovered slightly at the time of writing.
The currency pair rallied briefly after Germany’s Federal Statistical Office released the country’s latest inflation data. The final German CPI data for September was in line with previous estimates by coming in at a monthly 0.4%, which translated into an annualized 2.3%. However, the rally did not last as the greenback soon overtook the single currency, which led to a sustained downward trend up to the early American session. The release of the German industrial production data for September, which beat expectations by recording a 1.0% expansion versus the expected 0.4% growth had a muted impact on the pair.
Today’s recovery in the greenback was the main driver behind the pair’s decline as the dollar was boosted by hawkish comments from the Chicago Fed’s Charles Evans. The release of weak US import data had a muted impact on the pair, but the disappointing University of Michigan consumer sentiment survey triggered a brief rally by the pair.
Geopolitical events are likely to influence the pair’s performance over the weekend.
The EUR/USD currency pair was trading at 1.1558 as at 16:35 GMT having dropped from a high of 1.1610. The EUR/JPY currency pair was trading at 129.41 having declined from a high of 130.49.
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