The euro today rallied to new monthly highs buoyed by positive CPI data from the euro area combined with a weak US dollar. The EUR/USD currency pair today rallied to new highs based on positive geopolitical events related to Brexit and the US-China trade war.
The EUR/USD currency pair today rallied from a low of 1.1022 to a high of 1.1085 before retracing some of its gains by the time of writing.
The currency pair opened today’s session trading sideways before spiking higher in the early European session then quickly retracing its gains. The release of Italy’s industrial orders report for August by the National Institute of Statistics (Istat) contributed to the pair’s initial decline. Italy’s industrial orders grew 1.1% in August, missing expectations of a 1.9% increase. The release of Italy’s disappointing CPI for September an hour later also did not help the pair. The upbeat eurozone CPI data for September released by Eurostat help prevent the pair from falling further. The headline CPI print came in at 0.2%, while the core CPI print was 0.4%; both prints met expectations. The mixed eurozone trade balance data for August did not help the pair.
The pair’s rally was further boosted by the release of the weak US retail sales data for September by the Census Bureau. Positive Brexit and trade headlines also boosted the currency pair.
The currency pair’s future performance is likely to be affected by geopolitical events and tomorrow’s multiple US releases given the empty European dockets.
The EUR/USD currency pair was trading at 1.1074 as at 19:41 GTM having risen from a low of 1.1022. The EUR/JPY currency pair was trading at 120.43 having rallied from a low of 119.75.
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