Euro Range Bound on Mixed Eurozone PMIs, Rallies on Upbeat CPI Data

The euro today traded in a tight range against the US dollar during the Asian session as market risk sentiment subsided on weak Chinese Caixin manufacturing PMI data. The EUR/USD currency pair remained range bound as several PMI prints from across the eurozone were released by IHS Markit before rallying higher on upbeat eurozone inflation data.
The EUR/USD currency pair today rallied from a low of 1.1434 to a high of 1.1475 after the release of the positive eurozone CPI data.
The currency pair traded sideways with a bearish bias during the Asian session as fears of a global economic slowdown gripped investors. The pair remained in this range during the early European session after the release of the Markit Italy manufacturing PMI and the Markit/BME Germany manufacturing PMI, both of which missed consensus estimates. The Markit France manufacturing PMI and the Markit eurozone manufacturing PMI both met expectations preventing further losses by the pair. The release of the eurozone CPI data by Eurostat shorty thereafter helped secure the pair’s gains by meeting expectations.
The headline CPI print came in at an annualized 1.4% meeting expectations, while the core CPI print was recorded at 1.1% beating expectations by 0.1%. The pair’s rally was further boosted by improved market risk sentiment as investors price-in a quick resolution of the US-China trade war.
The currency pair’s short-term performance is likely to be affected by the release of US non-farm payrolls and the US ISM manufacturing PMI later today.
The EUR/USD currency pair was trading at 1.1466 as at 12:08 GMT having rallied from a low of 1.1434. The EUR/JPY currency pair was trading at 124.88 having risen from a low of 124.35.

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