The euro today alternated between gains and losses against the US dollar amid a raft of releases from across the euro area that kept the pair trading in a wide range. The EUR/USD currency pair reacted differently to the mixed European releases such as Germany’s retail sales data among others as it struggled to find direction.
The EUR/USD today traded within a wide range marked by a high of 1.0891 and a low of 1.0851 and was still within this range at the time of writing.
The currency pair opened today’s session with a large bearish candle but later rallied higher on the upbeat German retail sales report. According to the Federal Statistical Office, Germany’s retail sales fell 5.6% in March versus the expected 7.3% decline. The pair extended its gains boosted by upbeat Spanish preliminary inflation report for March, which came in at 0.3% beating analysts estimates of 0.2%. Germany’s downbeat April unemployment rate of 5.8% versus the expected 5.2% had a muted impact on the pair as it traded sideways.
The pair fell after the release of the disappointing preliminary eurozone GDP data for Q1 by Eurostat, which showed a 3.8% contraction as opposed to the expected 3.5%. The upbeat eurozone consumer price index report and the upbeat unemployment rate did little to boost the pair.
The currency pair extended its losses after the European Central Bank announced its monetary policy decision keeping interest rates steady at 0% and its lending rate at -0.5%. The ECB chief Christine Lagarde warned that the recovery path was uncertain and welcomed new government measures.
The currency pair’s future performance is likely to be affected by geopolitical events given tomorrow’s empty European dockets.
The EUR/USD currency pair was trading at 1.0865 as at 14:12 GMT having fallen from a high of 1.0891. The EUR/JPY currency pair was trading at 115.79 having dropped from a high of 116.14.
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