The euro today rallied higher against the US dollar as investors bid up the single currency lifting it away from yesterday’s lows triggered by the FOMC decision. The EUR/USD currency pair today rose steadily as the markets reacted to comments from the French calling for immediate fiscal stimulus measures.
The EUR/USD currency pair today rallied from an opening low of 1.1023 in the Asian session to a high of 1.1073 in the mid-European session before retracing some of its gains
The currency pair fell yesterday following the hawkish FOMC rate cut as the Fed Chair Jerome Powell remained non-commital about future rate cuts. The greenback rallied against its peers as tracked by the US Dollar Index, which hit a high of 98.69, as investors concluded that the Fed was now in a rate-cutting phase. However, the pair rallied higher today as markets weighed the European Central Bank’s calls for fiscal stimulus and the French finance minister pushed Germany to consider fiscal stimulus measures. The pair rallied higher following the release of upbeat eurozone current account data by the ECB, which came in at 29.84 billion beating expectations set at 26.20 billion.
The pair fell following the release of the upbeat US initial jobless claims data in the early American session. The positive Philadelphia Fed manufacturing business outlook survey, which was recorded at 12.0 versus the expected 11.0 also drove the pair lower.
The pair’s future performance is likely to be influenced by tomorrow’s German PPI data and speeches by US Fed members.
The EUR/USD currency pair was trading at 1.1056 as at 14:37 GMT having dropped from a high of 1.1073. The EUR/JPY currency pair was trading at 119.47 having rallied from a low of 118.96.
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