Euro Rallies Higher on Market-Wide US Dollar Retracement

The  euro today rallied higher against the  US dollar following the  market-wide selling of  the  US dollar, which boosted most of  its peers. The  EUR/USD currency pair rallied higher from the  early European session despite the  release of  mixed data from the  German docket.
The  EUR/USD currency pair rallied higher from a  low of  1.1550 to  a  high of  1.1607 in  the  early American session before heading lower.
The  release of  the  German trade balance data for  June by  the  Federal Statistical Office in  the  early European session boosted the  currency pair. The  trade balance data came in  at  â‚¬21.8 billion beating the  consensus estimate of  â‚¬20.8 billion and  the  previous figure of  â‚¬19.6 billion. The  German current account data came in  at  â‚¬26.2 billion versus the  expected €21.2 billion. German exports remained flat while imports grew by  1.2% also boosting the  pair. However, the  German industrial production data contracted by  0.9%, which was higher than the  expected 0.5% contraction. The  industrial production data translated into an  annualized 2.5% versus the  expected 3.0% print, which dragged the  pair lower.
The  currency pair retraced some of  its gains following the  release of  the  positive US JOLTS job openings data by  the  Bureau of  Labor Statistics. The  lack of  major economic releases from the  US docket meant that the  pair was very susceptible to  the  US-China trade tensions.
The  currency pair’s future performance is likely to  be influenced by  geopolitical events given tomorrow’s empty US and  European dockets.
The  EUR/USD currency pair was trading at  1.1591 as  at  15:06 GMT having dropped from a  high of  1.1607. The  EUR/JPY currency pair was trading at  128.91 having rallied from a  low of  128.58.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.