The euro today extended its rally against the US dollar for the fourth consecutive session driven by positive eurozone releases. The EUR/USD’s rally was also boosted by the release of mixed US data and the improved market risk sentiment amid Brexit hopes.
The EUR/USD currency pair today rallied from a low of 1.1276 in the early European session to a high of 1.1315 in the American session ahead of today’s crucial Brexit vote.
The currency pair traded sideways in the Asian session as investors remained undecided on its future direction. The pair rallied briefly in the early European session amid positive market risk sentiment. The pair then paused before rallying higher after the release of the eurozone industrial production report for January by Eurostat as both prints beat expectations. The monthly print came in at 1.4%, which was higher than the expected 1.0%, while the annual print contracted by 1.0% instead of the estimated 2.1% drop. The pair’s rally could also be traced to the much weaker greenback as tracked by the US Dollar Index, which hit a low of 96.65 today.
The pair later rallied higher following the release of the weak US PPI data by the Bureau of Labor Statistics in the early American session. The mixed US durable goods orders for February released by the Census Bureau also contributed to the pair’s rally.
The currency pair’s short-term performance is likely to be influenced by the outcome of the UK Brexit vote scheduled for 19:00 GMT.
The EUR/USD currency pair was trading at 1.1307 as at 17:09 GMT having rallied from a low of 1.1276. The EUR/JPY currency pair was trading at 125.76 having risen from a low of 125.43.
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