The euro today rallied higher briefly against the US dollar after the release of disappointing US advance goods trade balance in the early American session. The pair was on a downtrend for most of the European session despite the release of the OECD Economic Outlook report in the early European session.
The EUR/USD currency pair rallied higher after the release of the US data to hit a high of 1.1900, which is a lower resistance level than its daily high of 1.1920 set earlier in the European session.
The currency pair eased from Monday’s high of 1.1961 as investors took some of their profits off the table. The pair faced rejection at today’s high of 1.1920 where it was forced to retreat to levels below the 1.1900 handle as the greenback gained against the euro. The greenback as tracked by the US Dollar Index hit a high of 93.12 earlier in the session, but later retraced some of its gains. The positive sentiment around most European stocks also served to weaken the euro.
The release of the US advance goods trade balance data by the Census Bureau triggered the brief rally in the currency pair as it was below expectations. Other US releases such as the house price index also did not meet market consensus.
The release of the US consumer confidence index and the speech by the incoming Fed Chair Jerome Powell before the Senate are likely to affect the pair’s short-term performance.
The EUR/USD currency pair was trading at 1.1885 as at 14:38 GMT having retraced most of its gains from a high of 1.1920. The EUR/JPY currency pair was trading at 132.25 having dropped from a high of 132.56 earlier today.
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