The euro today rallied slightly higher against the US dollar following the ECB President, Mario Draghi‘s speech at an event in Frankfurt. The euro kept rising after the release of the US Consumer Price Index data despite the core inflation print being in line with expectations.
The EUR/USD currency pair today gained over 40 points to rally from a low of 1.2352 to trade at a high of 1.2396 at the time of writing.
The currency pair was on an uptrend from the Asian session due to positive investor sentiment towards the single currency. Mario Draghi’s comments at the Generation â¬uro Studentsâ Award Ceremony in Frankfurt reiterated his confidence that the Eurozone inflation rate would rise to meet the European Central Bank‘s target. He also stated that the impact of US tariffs on the Eurozone was not big, but that retaliatory measures by the bloc were the main issue. Draghi’s comments were largely interpreted as hawkish.
The release of the US CPI data by the Bureau of Labor Statistics in the early American session had minimal impact on the pair. The core CPI print met expectations by coming in at 0.2% in March, which translates to an annualized 2.1%. The headline inflation declined by 0.1% in March, but came in at an annualized 2.4%. Real average hourly earnings also increased by 0.4%.
The currency pair’s short-term performance is likely to be affected by the release of the latest FOMC minutes and the US budget report, both scheduled for later today.
The EUR/USD currency pair was trading at 1.2376 as at 14:36 GMT having risen from a low of 1.2352. The EUR/JPY currency pair was trading at 132.32 having dropped from a high of 132.60.
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