Euro Rallies Higher on Mixed Eurozone Data and Weak US PCE Data

The  euro today rallied higher against the  US dollar from the  late Asian session into the  early European session following positive releases from across the  Eurozone. Releases from the  US docket in  the  early American session triggered a  slight pullback in  the  EUR/USD currency pair.
The  EUR/USD currency pair today rallied from an  initial low of  1.1700 to  a  high of  1.1745 before retracing some of  its gains.
The  release of  the German retail sales for  June by  the  Federal Statistical Office in  the  early European session contributed to  the  pair’s rally. The  retail sales came in  at  a  monthly 1.2% beating expectations by  0.2%, while the  annualized figure came in  at  3.0% versus the  consensus estimate of  1.5%. The  German unemployment change report beat expectations by recording 6,000 jobs versus the  expected 10,000 jobs, while jobless claims were in  line with expectations at  5.2%. The  Eurozone unemployment rate for  June released by  Eurostat was in  line with expectations at  8.3%. The  Eurozone CPI data came in  at  a  monthly 1.1% and  an  annualized 2.1%; both prints beat expectations by  0.1%.
The  Eurozone Q2 GDP data also released today missed expectations by  coming in  at  a  quarterly 0.3% and  an  annualized 2.1% dragging the  pair lower. The  release of  the US personal income and  spending report by  the  Bureau of  Economic Analysis contributed to  the  pair’s decline despite the  disappointing core PCE print.
The  currency pair’s short-term performance is likely to  be affected by  the  release of  the  US consumer confidence index later today.
The  EUR/USD currency pair was trading at  1.1726 a  sat 13:26 GMT having dropped from a  high of  1.1745. The  EUR/JPY currency pair was trading at  131.03 having risen from a  low of  129.69.

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