The euro gained today on its major counterparts today, soaring 1% against the US dollar, after comments from Peter Navarro, head of US President’s new National Trade Council.
Navarro claimed that Germany uses the “grossly undervalued” euro to take advantage over the United States and other countries. German Chancellor Angela Merkel denied the accusations, saying that the government cannot influence the currency and stating:
Germany is a country that has always called for the European Central Bank to pursue an independent policy, just as the Bundesbank did before the euro existed.
The euro rallied following the remarks, also gaining strength from inflation data. The report from Eurostat showed that eurozone inflation accelerated from 1.1% in December to 1.8% in January. It was above the Analysts’ consensus prediction of 1.5%.
EUR/USD climbed from 1.0692 to 1.0790 as of 20:45 GMT today. EUR/JPY edged slightly up from 121.67 to 121.80. EUR/GBP rallied from 0.8564 to 0.8583, though it has backed off from the daily high of 0.8633.
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