The euro today rallied higher against the US dollar in the early European session following the release of upbeat PMI data from across the eurozone by IHS Markit. The EUR/USD currency pair later rallied higher in the American session following the release of weak US ADP employment data and a weak US dollar.
The EUR/USD currency pair today rallied from an opening low of 1.1200 to a high of 1.1254 before dropping and later rallying higher.
The currency pair opened today’s session with a bullish bias driven higher by positive investor sentiment. The pair benefited from the positive developments in the US-China trade negotiations as both sides appear optimistic about a potential deal. The pair rallied much higher after the release of the Markit Germany Services PMI, which came in at 55.4 beating expectations set at 54.9. The Markit eurozone services PMI also beat consensus estimates by coming in at 53.3 versus the expected 52.7. The pair extended its rally after the release of the eurozone retail sales data for February by Eurostat as the print came in at 0.40% versus the expected 0.10%.
The pair rebounded in the American session after the greenback fell as tracked by the US Dollar Index, which hit a low of 96.96. The disappointing Markit US services PMI and the weak US ISM non-manufacturing/services index also contributed to the recovery.
The currency pair’s future performance is likely to be affected by tomorrow’s ECB minutes and trade headlines.
The EUR/USD currency pair was trading at 1.1246 as at 17:50 GMT having risen from a low of 1.1200. The EUR/JPY currency pair was trading at 125.35 having rallied from a low of 124.58.
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