The euro today fell against the US dollar in the early European session despite the release of in-line German inflation data. The EUR/USD currency pair spiked to its daily highs after the European Central Bank announced its rate decision but quickly fell on hopes of a US-China trade deal.
The EUR/USD currency pair today spiked to a high of 1.1154 in the mid-European session before falling to a low of 1.1110 in the American session and was headed lower at the time of writing.
The currency pair rallied briefly during the Asian session before reversing and heading lower into the European session. The release of the German consumer price index data for November stalled the pair’s decline for a while. According to the Federal Statistical Office, Germany’s headline CPI remained stable at -0.8%, translating into an annualised 1.1%, while the harmonised CPI print came in at an annualised 1.2%; all prints met consensus estimates. The release of the eurozone industrial production report for October by Eurostat, which was recorded at -0.5% had a positive impact on the single currency.
The pair spiked to its daily highs after the European Central Bank published its monetary policy decision. The ECB’s Governing Council kept the deposit rate at -0.5% and its interest rate at 0.0% as was expected. However, the pair quickly fell after President Donald Trump tweeted that the US and China were close to a trade deal, which boosted the US Dollar Index.
The currency pair’s future performance is likely to be affected by trade headlines and tomorrow’s US and eurozone releases.
The EUR/USD currency pair was trading at 1.1114 as at 17:12 GMT having crashed from a high of 1.1154. The EUR/JPY currency pair was trading at 121.30 having risen from a low of 120.76.
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