The EUR/USD currency pair today extended its range-bound trading pattern for the third consecutive session as the pair reacted to mixed German data and news headlines. The currency pair’s performance was influenced by headlines regarding the US-China trade negotiations and Brexit developments, but investors remained undecided.
The EUR/USD currency pair today traded in a wide range defined by a high of 1.1356 and a low of 1.1316 and was within the same range at the time of writing.
The currency pair today traded in a consolidative pattern during the early Asian session amid subdued market action before rallying higher later in the session. The pair extended its rally following the release of positive German Q4 GDP results by the Federal Statistical Office as the various prints met expectations. GDP growth remained flat in Q4 2018, but came in at a 0.9% on an annualized basis, both prints met expectations. The release of the disappointing German IFO business climate index shortly afterwards triggered the pair’s first decline. The IFO business climate came in at 98.5 missing consensus estimates set at 99.0, while the current assessment print also missed expectations by 0.5.
The release of the eurozone CPI report for January by Eurostat provided a brief respite for the pair as all prints were in-line with consensus estimates. The pair later dropped lower before rallying higher in the American session.
The currency pair’s short-term performance is likely to be influenced by geopolitical events over the upcoming weekend.
The EUR/USD currency pair was trading at 1.1342 as at 16:56 GMT having risen from a low of 1.1316. The EUR/JPY currency pair was trading at 125.55 having rallied from a low of 125.37.
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