The euro today traded sideways against the US dollar reacting to releases from both the European and American dockets but failing to break out in a specific direction. The EUR/USD currency pair rallied higher in the early European session and later headed lower ignoring the upbeat German inflation data as the greenback recovered.
The EUR/USD currency pair today traded in a tight range between a high of 1.1381 and a low of 1.1346 and was within this range at the time of writing.
The currency pair opened today’s session heading lower driven by risk-off investor sentiment in the Asian session. The pair later rallied higher on positive developments in the US-China trade negotiations as both countries appeared optimistic about a deal. The release of the weak eurozone business climate indicator by the European Commission and the disappointing eurozone economic sentiment indicator had a muted impact on the currency pair. The pair extended its gains despite the weak releases. The pair reversed course and started falling despite the release of the upbeat German consumer price index data by the Federal Statistical Office.
The pair kept falling despite the release of the disappointing US Q1 GDP estimate by the Bureau of Economic Analysis. The weak personal consumption data and the higher-than-expected initial jobless claims data released by the Department of Labor also could not reverse the pair’s decline.
The currency pair’s future performance is likely to be affected by tomorrow’s eurozone CPI data and the US PCE report.
The EUR/USD currency pair was trading at 1.1367 as at 16:55 GMT having risen from a low of 1.1346. The EUR/JPY currency pair was trading at 122.44 having dropped from a high of 122.89.
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