The euro today fell from Asian session highs in the early European session following the release of mixed macro data from across the euro area. The EUR/USD currency pair later rallied higher in the mid-European session as market risk sentiment improved before heading lower in the American session.
The EUR/USD currency pair today traded between a high of 1.1402 and a low of 1.1348, but was trading almost flat at the time of writing.
The currency pair’s initial rally could be attributed to the weaker US dollar, which was reeling from yesterday’s dovish comments by the Fed Chair, Jerome Powell. The pair headed lower shortly after the release of the French Q3 GDP data by Insee, which came in at an annualized 1.4%, missing expectations by 0.1%. The pair extended its losses despite the release of the upbeat German unemployment change data, which showed a decline of 16,000 versus the expected 10,000 jobs, beating expectations by 0.1%. The positive eurozone economic sentiment indicator and the business climate indicator released later by the European Commission all had a muted impact on the currency pair.
The release of the weak German CPI data by the Federal Statistical Office triggered another decline in the pair. The release of weak US data such as the core PCE print for October and the jobless claims data, which missed expectations triggered a brief rally by the pair.
The pair’s short-term performance is likely to be influenced by the release of the FOMC minutes at 19:00 GMT.
The EUR/USD currency pair was trading at 1.1383 as at 16:26 GMT having rallied from a low of 1.1348. The EUR/JPY currency pair was trading at 129.07 having risen from a low of 128.65.
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Euro Declines on Weak Eurozone Data, Later Rallies on Weak US Data
