The EUR/USD currency pair was in a consolidative phase during the Asian session even as US Treasury yields hit new highs overnight and the greenback rally lost some momentum. The release of the German wholesale price index in the early European session was one of the triggers behind the currency pair’s decline as the euro weakened against the US dollar.
The EUR/USD currency pair was trading between a high of 1.1821 and a low of 1.1775, but had recovered slightly at the time of writing.
The euro broke its consolidative trend in the early European session after the Federal Statistical Office released Germany’s wholesale price index for April. The wholesale prices rose by a monthly 0.5% and an annualized 1.4%, which was higher than previous levels. The German producer price index also contributed to the initial decline by coming in at 2% YoY. The release of the mixed Eurozone current account data by Eurostat also contributed to the pair’s decline. The Eurozone trade balance data, which came in at â¬26.9 billion, could not reverse the pair’s decline.
The euro held its ground against the US dollar overnight even as US 10-year Treasury yields hit a high of 3.13%. The US Dollar Index, which tracks the greenback’s performance, also retraced some of yesterday’s gains to hit a low of 93.34 even as Treasury yields declined.
The currency pair’s short-term performance is likely to be affected by speeches from the Fed’s Lael Brainard and Robert Kaplan given today’s empty US docket.
The EUR/USD currency pair was trading at 1.1780 as at 11:11 GMT having dropped from a high of 1.1821. The EUR/JPY currency pair was trading at 130.77 having declined from a high of 131.11.
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