The euro inched higher against the US dollar in the Asian session and jumped higher in the early European session after Mario Draghi’s mostly hawkish speech in Frankfurt. The euro then headed lower against the greenback following the release of the latest eurozone CPI data, which was in-line with expectations.
The EUR/USD currency pair today rallied to a high of 1.1369 before dropping to a low of 1.1320 after the inflation data.
The currency pair initially headed higher driven by the risk-on market sentiment that has dominated the market for most of the week due to the possibility of a US-China trade deal. The pair’s rally gathered momentum after the European Central Bank President, Mario Draghi delivered a hawkish speech in Germany where he stated that the economic recovery in the euro area was resilient. He also reiterated the fact that the ECB would terminate its asset purchase programs in December. However, he also warned that the eurozone economy faces various uncertainty that could hinder the region’s economic growth, such as, a disorderly Brexit.
The pair headed lower after the release of the eurozone CPI data for October by Eurostat with the monthly print coming in at 0.2%, which translated into an annualized 2.2%; both prints met expectations as did the core CPI print, which was recorded at 1.1%.
The currency pair’s short-term performance is likely to be influenced by the release of the US industrial production and manufacturing production data later today.
The EUR/USD currency pair was trading at 1.1330 as at 11:53 GMT having dropped from a high of 1.1369. The EUR/JPY currency pair was trading at 128.38 having fallen from a high of 128.78.
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