The euro today rallied higher against the US dollar, which was under intense selling pressure as investors cautiously waited for US-China trade talks to resume. The EUR/USD currency pair rallied higher despite weak macro releases from Germany in the early European session mainly driven by positive investor risk sentiment.
The EUR/USD currency pair today rallied from an opening low of 1.0980 to a high of 1.1033 in the mid-European session but had retraced some of its gains by the time of writing.
The currency pair opened today’s session trading with a bullish bias before rallying to its daily highs in the European session. The pair’s gains were driven by the persistent selling pressure on the greenback as well as a rebound in German bond yields, which hit a high of -0.47%. The release of Germany’s trade balance data for August had a muted impact on the pair, which kept rallying higher. The Federal Statistical Office reported that Germany’s trade surplus fell to â¬18.1 billion versus the expected â¬19.1 billion print. The country’s imports grew 0.5% beating expectations of a 0.2% decline, while its exports shrunk 1.8% versus the expected 1.0% contraction.
The release of the European Central Bank’s minutes showing resistance to further quantitative easing measures had a minimal impact on the pair. The release of the US CPI data for September by the Bureau of Labor Statistics also had little effect on the currency pair.
The currency pairs future performance is likely to be affected by the outcome fo the Sino-US trade talks and tomorrow’s German CPI data.
The EUR/USD currency pair was trading at 1.1022 as at 16:07 GMT having rallied from a low of 1.0980. The EUR/JPY currency pair was trading at 118.92 having risen from a low of 117.73.
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