The euro was soft today. While the currency managed to gain on the US dollar thanks to the dovish Federal Reserve, unfavorable domestic macroeconomic data prevented the euro from rising against other most-traded rivals.
The German Producer Price Index fell 0.1% in May from the previous month. That is compared to the median forecast of a 0.2% increase and the 0.5% gain registered in April. The eurozone current account surplus shrank to â¬21 billion in April from â¬25 billion in March, below the market consensus of â¬23 billion. The Italian trade balance surplus was at â¬2.285 billion in April, shrinking from the previous month as import was rising with faster pace than export.
The surprisingly dovish Fed hurt the US dollar, allowing the euro to gain on the greenback. But the European Central Bank was dovish itself, and ECB President Mario Draghi made remarks on Tuesday that led to speculations that the ECB may make monetary policy more stimulating soon.
EUR/USD rallied from 1.1193 to 1.1226 as of 20:53 GMT today, touching the maximum of 1.1254 intraday. Meanwhile, EUR/GBP slumped from 0.8912 to 0.8880, and EUR/CHF tumbled from 1.1194 to 1.1159.
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