The euro today rallied higher against the US dollar in the European and American sessions reversing five consecutive losing sessions to trade slightly higher. The EUR/USD currency pair today reversed Asian session losses and rallied higher boosted by positive German data and the greenback’s weakness after hitting a key resistance zone.
The EUR/USD currency pair today rallied from a low of 1.1148 in the Asian session to a high of 1.1175 in the American session and was near these highs at the time of writing.
The currency pair opened the Asian session with a bearish bias amid a risk-off market sentiment and a strong greenback, but turned higher in the early European session. The release of the upbeat German producer prices data for April boosted the single currency triggering the reversal. According to Germany’s Federal Statistical Office, the country’s producer prices rose 0.5% in March beating expectations set at 0.3%. The pair continued higher until the release of the eurozone current account data for March, by Eurostat which declined to â¬24.7 billion causing the spot’s decline. The pair kept falling despite the European Central Bank‘s Peter Praet‘s speech in London.
The pair rallied higher in the American session after the release of the disappointing Chicago Fed National Activity index. The greenback also fell as tracked by the US Dollar Index, which hit a low of 97.88 driving the pair higher.
The currency pair’s future performance may be influenced by tomorrow’s OECD economic outlook and the eurozone consumer confidence print.
The EUR/USD currency pair was trading at 1.1169 as at 16:48 GMT having risen from a low of 1.1148. The EUR/JPY currency pair was trading at 122.84 having recovered from a low of 122.51.
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