The euro today rallied against the US dollar during the first half of today’s session before turning lower later and giving up most of its gains to trade flat for the day. The EUR/USD currency pair’s behaviour was primarily influenced by the investor risk appetite of lack thereof as well as the mixed releases from across the euro area.
The EUR/USD currency pair today rallied to a high of 1.1287 in the mid-European session before falling to a low of 1.1219 during the American market and was trading near these lows at the time of writing.
The currency pair rallied higher during the Asian session on positive investor sentiment boosted by upbeat industrial production data from China. The bullish momentum persisted into the European session and was supported by the positive German consumer price index data for June. According to Germany’s Federal Statistical Office, the country’s preliminary inflation figure came in at 0.7% versus the expected 0.4%, while the annualised print was 0.8% beating estimates by 0.1%. The upbeat eurozone business climate indicator for June released by the European Commission also boosted the pair. The weak eurozone economic and services sentiment indicators had a muted impact on the single currency.
The currency pair’s decline during the American session was fueled by the greenback’s recovery as tracked by the US Dollar Index, which hit a high of 97.65. The upbeat US pending home sales report released during that time also drove the pair lower.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple eurozone releases.
The EUR/USD currency pair was trading at 1.1236 as at 19:38 GMT having fallen from a high of 1.1287. The EUR/JPY currency pair was trading at 120.95 having rallied from a high of 120.23.
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