The euro today rallied against the US dollar earlier in the session despite the release of mostly week eurozone data following rumors about a rate cut delay by the European Central Bank. The EUR/USD currency pair rose to its daily highs in the early European session before falling as the US dollar recovered amid a subdued market environment.
The EUR/USD currency pair today rallied from an Asian session low of 1.1273 to a high of 1.1321 in the early European session before retracing most of its gains.
The currency pair opened today’s session with a bearish bias extending yesterday’s losses before the ECB rumors drove the pair higher. The pair reacted to news that the ECB would not cut rates at its July meeting. The pair ignored the release of the disappointing German retail sales data by the Federal Statistical Office. The retail sales contracted 0.6% versus the expected 0.5% expansion. The pair also did not react to the release of the weak eurozone producer price index by Eurostat shortly before the rumors emerged. The PPI print contracted 0.1% as opposed to the expected 0.1% increase.
The currency pair later fell as European Union leaders met to divide the organization’s top jobs. Christine Lagarde the IMF’s managing director was nominated to replace Mario Draghi at the ECB, while Draghi will be moving to the IMF.
The currency pair’s future performance is likely to be influenced by tomorrow’s multiple eurozone and US macro releases as well as geopolitical events.
The EUR/USD currency pair was trading at 1.1293 as at 18:18 GMT having fallen from a high of 1.1273. The EUR/JPY currency pair was trading at 121.83 having dropped from a high of 122.53.
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