EUR/USD Pair Falls From Daily Highs on Upbeat US Retail Sales

The  euro today fell against the  US dollar in  the  American session following the  release of  upbeat US retail sales data. The EUR/USD currency pair fell from its daily highs giving up all the gains made earlier in the session as the Dollar Index soared.
The  EUR/USD currency pair today fell from a  high of  1.1173 in  the  mid-European session to  a  low of  1.1128 in  the  American session and  was near these lows at  the  time of  writing.
The  currency pair fell during the  Asian session as  investors took profits following yesterday’s rally. The  pair rallied higher in  the  early European session following the  release of  the  in-line German consumer price index data for  December. According to  the  Federal Statistical Office, German monthly inflation came in  at  0.5%, which translated into an  annualised 1.5%; both prints met expectations boosting the  single currency. The  release of  the  European Central Bank‘s minutes of  its latest monetary policy meeting also helped steer the  pair higher. However, the  report contained no surprises as  it reiterated the  ECB’s wait-and-see attitude and  the  planned strategic review of  its monetary policies.
The  release of  the  upbeat US retail sales report for  December by  the  Census Bureau triggered the  pair’s crash. The  control group retail sales came in  at  0.5% beating expectations by  0.1%, while core retail sales were 0.7% versus the  expected 0.5% print. The  upbeat Philadelphia Fed manufacturing survey for  January also contributed to  the  pair’s woes.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s multiple eurozone and  US releases.
The  EUR/USD currency pair was trading at  1.1134 as  at  19:37 GMT having fallen from a  high of  1.1173. The  EUR/JPY currency pair was trading at  122.63 having dropped from a  high of  122.87.

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