The euro today fell against the US dollar early in the European session despite the release of upbeat euro area producer price index data as the bears controlled the price action. The EUR/USD currency pair later rallied during the American session as the dollar retreated against its peers amid falling US Treasury yields to trade flat for the day.
The EUR/USD currency pair today rallied to a high of 1.1806 in the European session before falling to a low of 1.1722 and then recouping most of its losses to trade flat at the time of writing.
The currency pair rallied higher earlier today driven by bullish investor sentiment amid expectations of a quick economic recovery in the eurozone. The greenback’s overall weakness as tracked by the US Dollar Index, which hit a low of 93.28 today also fueled the pair’s rally. The release of the upbeat eurozone PPI data for June by Eurostat saw the pair hit its daily highs before reversing and heading lower. The PPI print came in at 0.7% versus the expected 0.5% pushing the single currency higher.
The greenback’s sustained weakness after the US open despite the release of the positive US factory orders report for June fueled the pair’s second recovery. According to the Census Bureau, US factory orders grew 6.2% beating analysts expectations of a 5% increase.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple eurozone PMI reports.
The EUR/USD currency pair was trading at 1.1784 as at 17:40 GMT, having recovered from a low of 1.1722. The EUR/JPY currency pair was trading at 124.61, having fallen from a high of 125.00.
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