The euro today rallied to new April highs against the US dollar driven largely by positive investor sentiment amid a calm market environment. The EUR/USD currency pair today rallied higher boosted by the selling pressure around the greenback and the shrinking yield spread between US and German bonds.
The EUR/USD currency pair today rallied from an opening low of 1.1213 to a monthly high of 1.1274 before retracing some of its gains.
The currency pair’s initial rally was triggered by positive investor risk sentiment as markets priced in the possibility of a trade deal being signed by the US and China. The pair extended its rally in the early European session following the release of Germany’s trade balance data for February by the Federal Statistical Office as the print beat expectations. The country’s trade balance came in at â¬18.7 billion beating consensus estimates set at â¬17.0 billion. However, the country’s imports and exports came in lower than expected, but this did not stop the single currency from rallying. The pair kept rallying following the release of the Eurozone sentix investor confidence index for April, which was higher than expected.
The currency pair’s rally was also facilitated by the selling pressure on the greenback as tracked by the US Dollar Index, which hit a low of 96.98. The pair dropped following the release of the US durable goods orders by the Census Bureau.
The currency pair’s future performance is likely to be affected by geopolitical events including Brexit and trade headlines.
The EUR/USD currency pair was trading at 1.1261 as at 16:24 GMT having rallied from a low of 1.1213. The EUR/JPY currency pair was trading at 125.54 having risen from a low of 124.96.
If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.
