Euro Rallies on Christine Lagarde’s Testimony and Weak Dollar

The euro today rallied higher following comments made by Christine Lagarde who has been nominated to head the European Central Bank. The EUR/USD currency pair today extended yesterday’s recovery as the US dollar remained on the back foot due to weak American releases.
The EUR/USD currency pair today rallied from a low of 1.0972 in the Asian session to a high of 1.1032 in the American session and was near these highs at the time of writing.
The currency pair opened today’s session trading sideways after recovering from yesterday’s new yearly lows before rallying higher in the European session. The pair rallied higher despite Christine Lagarde’s dovish comments where she promised to maintain accommodative policies. The release of the upbeat Markit German services PMI, which came in at 54.8 beating expectations set at 54.4 also boosted the pair. The release of the upbeat Markit eurozone services PMI, which came in at 53.5 beating expectations by 0.1 also contributed to the pair’s rally. The positive eurozone retail sales data for July released by Eurostat also boosted the pair’s performance. The monthly retail sales came in at -0.6% as expected, while the annualized print beat estimates.
The fiber’s rally was aided by the weak greenback as tracked by the US Dollar Index, which fell from yesterday’s multi-year highs to a low of 98.49. The weak US trade balance data for July released by the Bureau of Economic Analysis also boosted the pair.
The pair’s future performance is likely to be affected by tomorrow’s German factory orders and US jobs data.
The EUR/USD currency pair was trading at 1.1030 as at 16:30 GMT having rallied from a low of 1.0972. The EUR/JPY currency pair was trading at 117.23 having risen from a low of 116.14.

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