The euro today rallied slightly higher after Ewald Nowotny, an ECB governing council member, stated that the bank should capitalize on the opportunity to normalize its policies soonest possible. The EUR/USD currency pair had a muted reaction to the release of the final Eurozone CPI data early in the European session despite the print being in line with expectations.
The EUR/USD currency pair today rallied slightly from a low of 1.1544 to a high of 1.1615, but could not recover from yesterday’s massive plunge.
The currency pair rallied briefly higher after Nowotny’s comments, which appeared hawkish following yesterday’s dovish stance taken by the European Central Bank in relation to raising interest rates. The currency pair had a muted reaction to the release of the latest Eurozone CPI data by Eurostat earlier today. The final headline CPI print came in at 0.5% in May translating into an annualized 1.9%; both prints met expectations. The core CPI print also met earlier estimates by coming in at an annualized 1.1%. The Eurozone trade balance data released today missed expectations by coming in at â¬16.7 billion versus the previous â¬26.9 billion.
A slight retracement by the US dollar due to the trade tensions between the USA and China also contributed to the pair’s slight rally. The US Dollar Index, which tracks the greenback’s performance, today hit a low of 94.67.
The currency pair’s future performance is likely to be affected by the University of Michigan consumer survey due for release later today.
The EUR/USD currency pair was trading at 1.1599 as at 11:45 GMT having rallied from a low of 1.1544. The EUR/JPY currency pair was trading at 128.37 having risen from a low of 127.70.
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