Euro Trades Higher on Positive Inflation Data Amid Weak US Data

The  euro today traded higher against the  US dollar following the  release of  inflation data from across the  eurozone in  the  early European session. The  EUR/USD currency pair extended its gains in  the  early American session after the  release of  US manufacturing data, which missed expectations.
The  EUR/USD currency pair today rallied from a  low of  1.1618 in the early European session to  an intra-day high of  1.1681 and was on an uptrend at the time of writing.
The  currency pair’s initial rally was triggered by  Italian news headlines, which indicated that the  new government was taking further steps to  limit the  country’s budget deficit. The  release of  the  final eurozone CPI data for  August by  Eurostat later in  the  session also contributed to  the pair’s rally as  the  print met expectations. The  headline monthly CPI print came in  at  0.2% meeting expectations. The monthly CPI print translated into an  annualized 2.0%, which was in  line with the  European Central Bank‘s targets. The  core CPI print came in  at  an  annualized 1.0%, also in  line with consensus estimates.
The  pair’s rally was hampered by  the  potential for  the  imposition of  additional US tariffs on  $200 billion of  Chinese imports. Speeches from the  ECB’s Benoit Coeure and  Peter Praet had a  minimal impact on  the  single currency. The  release of  the  US empire state manufacturing survey for  September also boosted the  pair as  it missed expectations.
The  currency pair’s future performance is likely to  be affected by  Mario Draghi‘s speech tomorrow, and  geopolitical events.
The  EUR/USD currency pair was trading at  1.1691 as  at  13:19 GMT having rallied from a  low of  1.1618. The  EUR/JPY currency pair was trading at  130.96 having risen from a  low of  130.10.

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