Euro Hits Daily Highs on Fed Rate Decision and Mixed Eurozone Data

The  euro today rallied to  new daily highs against the  US dollar following the  FOMC rate decision, which was in  line with analysts consensus estimates. The  EUR/USD currency pair today alternated between gains and  losses driven by  mixed fundamental releases from across the  eurozone.
The  EUR/USD currency pair today rallied from an  opening low of  1.0830 to  a  high of  1.0881 after the  Fed’s decision and  was trading near these highs at  the  time of  writing.
The  currency pair’s movements earlier today were driven by  multiple factors including investor sentiment and  the  mixed euro area macro reports. The  pair spiked higher in  the  early European session despite the  release of  weak German import price index data by  the  Federal Statistical Office; the  print came in  at  -3.5% versus the  expected -2.5%. Spain’s March retail sales report also missed consensus estimates by  contracting 14.1% as  compared to  the  expected 1.7% growth. The  Eurozone consumer confidence, business climate, and  economic sentiment indicators all missed expectations dragging the  pair lower.
The  preliminary German consumer price index report for  April released by  the  Federal Statistical Office beat expectations indicating that the  German economy was recovering.
The  pair spiked higher after the  Federal Open Market Committee announced its monetary policy decision as  they left interest rates at  0.25%. Fed Chairman Jerome Powell reported that the  US economy would contract significantly in  Q2 as  more industries are impacted by  the  coronavirus pandemic.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s multiple eurozone releases and  geopolitical events.
The  EUR/USD currency pair was trading at  1.0874 as  at  18:59 GMT having rallied from a  low of  1.0830. The  EUR/JPY currency pair was trading at  115.90 having risen from a  low of  115.44.

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