The EUR/USD currency pair today rallied to new highs ignoring the robust US GDP data released mid-European session, which led to a brief decline. The currency pair rallied higher in the late Asian session and the early European session after the release of positive Eurozone data.
The currency rallied by over 70 points from its daily low hit during the Asian session with a minor decline that occurred after the US releases, before resuming its upward trend.
The release of the positive Eurozone economic sentiment indicator for September by the European Commission, which exceeded expectations, might have caused the pair’s initial rally. The economic sentiment indicator came in at 113 versus the expected 112. The weak German GfK consumer confidence survey for October, which was recorded at 10.8 instead of the expected 11, also had minimal impact on the currency pair.
The strong data from the US docket derailed the EUR/USD pair for a while, but the pair resumed its upward momentum after two hours. The GDP data for the second quarter released by the Bureau of Economic Analysis exceeded expectations by recording a 3.1% increase instead of the expected 3.0% rise. The advance goods trade balance for August released by the Census Bureau also exceeded expectations by recording a deficit of $62.9 billion versus the expected $65.1 billion deficit. The initial jobless claims data disappointed by coming in at 272,000 as compared to the expected 270,000.
The currency pair’s future performance is likely to be affected by the release of German unemployment change data and US PCE data, both scheduled for tomorrow.
The EUR/USD currency pair was trading at 1.1787 as at 14:36 GMT having rallied from a low of 1.1721 earlier today. The EUR/JPY currency pair was trading at 132.78 having rallied from a low of 132.31.
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