The EUR/USD currency pair today rallied to new highs after the release of US Personal Consumption Expenditure report in the early American session. The currency pair had been trending downwards after the release of the Eurozone Consumer Price Index, which was below expectations.
The EUR/USD currency pair rallied by over 100 points from its daily low of 1.1809 to hit a high of 1.1912 and was on an uptrend at the time of writing.
The currency pair hit its daily lows in the early European session after the release of the Eurozone inflation data by Eurostat, which missed expectations. The CPI print for November came in at 1.5% on an annualized basis as opposed to the market consensus of 1.6%. The inflation data outweighed the positive Eurozone unemployment rate for October, which was recorded at 8.8% versus the expected 8.9%. The positive German unemployment data released by the Federal Statistical Office could not lift the single currency.
The release of the US PCE data for the month of October by the Bureau of Economic Analysis is what triggered the pair’s rally. The core PCE rose by 0.2% on a monthly basis and at a rate of 1.4% on an annualized basis, which was in line with expectations. The initial jobless claims data released by the Department of Labor was below expectations, but could not contain the pair’s rally.
The currency pair’s future performance is likely to be affected by tomorrow’s Italian GDP release and the US ISM Manufacturing data.
The EUR/USD currency pair was trading at 1.1915 as at 15:14 GMT having rallied from a daily low of 1.1809. The EUR/JPY currency pair was trading at 133.30 having risen from a low of 132.62.
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