Euro Rallies Against the Dollar on Upbeat Euro Area Macro Prints

The  euro today rallied higher against the  US dollar capitalising on  the  greenback’s overall weakness since yesterday’s speech by  the  Fed Chair. The  EUR/USD currency pair also benefitted from the  upbeat macro releases from across the  euro area, which lent support to  the  single currency today.
The  EUR/USD currency pair today rallied from a  low of  1.1811 at  the  start of  the  Asian session to  a  high of  1.1919 in  the  mid-European market before giving up part of  its gains.
The  currency pair’s rally was boosted by  the  upbeat German import price index report for  July released by  the  Federal Statistical Office. However, the  downbeat German GfK consumer sentiment survey for  September limited the  pair’s initial gains as  the  print came in  at  -1.8 versus the  expected 1.2. The  positive French consumer price index report for  August released by  Insee also fueled the  pair’s rally. The  inflation print was recorded at  -0.1%, beating analysts estimates of  -0.2%. The  inline French Q2 GDP report, which came in at  -13.8%, had a  muted impact on  the  pair.
The  pair fell after the  release of  the  weak eurozone business climate indicator combined with the  inline consumer confidence print. However, the  economic sentiment indicator was better than expected. The  upbeat US PCE data and  the  University of  Michigan consumer sentiment index for  August had a  minimal impact on  the  pair.
The  currency pair’s performance over the  upcoming weekend is likely to  be affected by  geopolitical events and  US dollar dynamics.
The  EUR/USD currency pair was trading at  1.1884 as  at  18:53 GMT, having rallied from a  low of  1.1811. The  EUR/JPY currency pair was trading at  125.34, having fallen from a  high of  126.78.
If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *