Euro Struggles to Rally Despite Upbeat Eurozone Inflation Data

The euro today attempted to rally against the US dollar from the Asian session but encountered massive resistance despite the release of upbeat euro area inflation data. The EUR/USD currency pair could not muster enough momentum to mount a sustained rally as each attempt was quickly countered by a retracement as the bears stepped in.
The EUR/USD currency pair today rallied from a low of 1.1200 in the early European session to a high of 1.1233 in the American session and was trading near these highs at the time of writing.
The fiber opened today’s session with a bullish bias and struggled to rally higher during the Asian session before spiking lower in the early European session. The pair’s drop was not triggered by any fundamental releases and could be attributed to a shift in investor risk sentiment following Donald Trump‘s comments regarding the US-China trade talks. The pair rallied higher after the speech by European Central Bank member Benoit Coeure. The currency pair extended its gains following the release of upbeat eurozone inflation data for June by Eurostat. The headline CPI print came in at 0.2%, while the core print came in at 0.4%; both prints beat consensus estimates by 0.1%.
The currency pair extended its rally following the release of the latest US housing starts and building permits data by the Census Bureau, which missed expectations.
The currency pair’s future performance is likely to be affected by US dollar dynamics given tomorrow’s empty European dockets.
The EUR/USD currency pair was trading at 1.1224 as at 17:26 GMT having risen from a low of 1.1200. The EUR/JPY currency pair was trading at 121.31 having fallen from a high of 121.48.

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