The euro today rallied from new 2-year lows against the US dollar hit during the Asian session despite the release of mostly weak macro data from across the eurozone. The EUR/USD currency pair pulled back from the lows as the greenback fell boosting the single currency and helping it rally despite the weak euro area fundamentals.
The EUR/USD currency pair today fell to a new 2-year low of 1.0905 in the Asian session before rallying to a high of 1.0939 and was near these highs at the time of writing.
The currency pair fell to its new lows at the start of today’s session driven mainly by the stronger greenback. The pair rebounded then headed lower as the European session approached and the German import price index for August was released. According to the Federal Statistical Office, Germany’s import price index fell 0.6% in August as opposed to the expected 0.3% decline. The release of the weak French CPI data for September by Insee shortly afterwards also contributed to the pair’s decline. The weak eurozone business climate index for September released by the European Commission had a muted impact on the pair. Investors also ignored the weak eurozone economic sentiment report.
The pair was holding on to its gains at the time despite the mixed releases from the US docket at 12:30 GMT. The greenback was still weak at the time as tracked by the US Dollar Index, which was trading at 99.15.
The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events.
The EUR/USD currency pair was trading at 1.0946 as at 12:47 GMT having rallied from a low of 1.0905. The EUR/JPY currency pair was trading at 118.28 having risen from a low 117.45.
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