Euro Rallies Higher Against US Dollar on Upbeat Eurozone CPI

The euro today rallied higher against the US dollar amid a raft of macro releases from both the Eurozone and the US dockets. The single currency was boosted by the release of German December employment change data, which was better than expected.

The EUR/USD currency pair today gained over 70 points from a low of 1.2399 to hit a high of 1.2473.

The currency pair was on an uptrend from the Asian session as investors ditched the greenback in favor of the euro. The pair dipped lower after the release of disappointing German retail sales data for December in the early European session. The retail sales recorded a 1.9% decline on both an annualized and monthly basis. The pair rallied higher after the release of German unemployment change data by the Federal Statistical Office, which was better than expected by coming in at 25,000, versus the expected 17,000. The pair rallied much higher after Eurostat released its flash estimate of the Eurozone CPI, which was recorded at 1.3% on an annualized basis, as compared to the expected 1.2%.

The release of the US ADP employment change report in the early American session had a slight negative impact on the currency pair. ADP reported 234,000 new jobs versus the expected 185,000 jobs. The positive Chicago business barometer also had a similar impact on the pair.

The currency pair’s short-term performance is likely to be affected by the FOMC rate decision scheduled for later today.

The EUR/USD currency pair was trading at 1.2464 as at 15:32 GMT having rallied from a low of 1.2399. The EUR/JPY currency pair was trading at 135.85 having risen from an opening low of 134.92.

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