The euro today traded higher against the US dollar following the release of inflation data from across the eurozone in the early European session. The EUR/USD currency pair extended its gains in the early American session after the release of US manufacturing data, which missed expectations.
The EUR/USD currency pair today rallied from a low of 1.1618 in the early European session to an intra-day high of 1.1681 and was on an uptrend at the time of writing.
The currency pair’s initial rally was triggered by Italian news headlines, which indicated that the new government was taking further steps to limit the country’s budget deficit. The release of the final eurozone CPI data for August by Eurostat later in the session also contributed to the pair’s rally as the print met expectations. The headline monthly CPI print came in at 0.2% meeting expectations. The monthly CPI print translated into an annualized 2.0%, which was in line with the European Central Bank‘s targets. The core CPI print came in at an annualized 1.0%, also in line with consensus estimates.
The pair’s rally was hampered by the potential for the imposition of additional US tariffs on $200 billion of Chinese imports. Speeches from the ECB’s Benoit Coeure and Peter Praet had a minimal impact on the single currency. The release of the US empire state manufacturing survey for September also boosted the pair as it missed expectations.
The currency pair’s future performance is likely to be affected by Mario Draghi‘s speech tomorrow, and geopolitical events.
The EUR/USD currency pair was trading at 1.1691 as at 13:19 GMT having rallied from a low of 1.1618. The EUR/JPY currency pair was trading at 130.96 having risen from a low of 130.10.
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