The euro today rallied higher amid calm global financial markets, which encouraged a risk-on mood among investors boosting the single currency. However, the euro gave up some of its gains against the US dollar following the release of mixed US retail sales data in the early American session.
The EUR/USD currency pair today rallied from an opening low of 1.1675 to a high of 1.1725 in the American session, but later gave up some of its gains.
The currency pair started today’s session on an uptrend given the lack of any new developments in the trade war being spearheaded by Donald Trump‘s administration. The European economic docket was also largely devoid of any important releases except for the release of the Eurozone trade balance data by Eurostat in the early European session. The trade balance data disappointed by coming in at â¬16.5 billion in May, which was lower than the expected â¬17.6 billion trade surplus. The monetary policy divergence between the US Federal Reserve and the European Central Bank also affected the currency pair.
The release of the mixed US advance retail sales data for June by the Census Bureau in the early American session also boosted the US dollar. The headline retail sales data expanded by 0.5% in June, which was in line with expectations, while the core retail sales rose by 0.4% beating consensus estimates by 0.1%.
The currency pair’s performance is likely to be affected by news headlines from today’s meeting between Donald Trump and Vladimir Putin in Helsinki.
The EUR/USD currency pair was trading at 1.1715 as at 14:18 GMT having rallied from an initial low of 1.1675. The EUR/JPY currency pair was trading at 131.58 having risen from a low of 131.25.
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Euro Rallies on Risk-On Sentiment, Later Declines on US Retail Sales
