TheÂ euro today rallied higher against theÂ US dollar despite theÂ release ofÂ weak German factory orders forÂ April inÂ theÂ early European session. TheÂ euro’s rally was further boosted byÂ theÂ weak US dollar even asÂ investors turned bullish onÂ theÂ single currency, andÂ sold theÂ greenback.
TheÂ EUR/USD currency pair today rallied from aÂ low ofÂ 1.1781 toÂ aÂ high ofÂ 1.1840 gaining over 55 points despite theÂ mixed Eurozone data.
TheÂ currency pair rallied higher asÂ investors priced-in theÂ news that theÂ European Central Bank would discuss exiting its quantitative easing program atÂ its upcoming meeting. TheÂ release ofÂ theÂ weak German factory orders forÂ April byÂ theÂ Federal Statistical Office could not reverse theÂ pair’s steady rise. TheÂ factory orders contracted byÂ anÂ annualized 0.1% andÂ aÂ monthly 2.5%. TheÂ final Eurozone GDP print forÂ theÂ first quarter asÂ released byÂ Eurostat met expectations set atÂ anÂ annualized 2.5% andÂ aÂ quarterly 0.4%, but was not theÂ basis forÂ theÂ pair’s rally. Eurozone government expenditure did not expand inÂ theÂ first quarter, which limited theÂ pair’s rally.
TheÂ US dollar was weighed down byÂ trade concerns forÂ most ofÂ today’s session. TheÂ release ofÂ theÂ higher-than-expected initial jobless claims data byÂ theÂ US Department ofÂ Labor had aÂ muted impact onÂ theÂ currency pair.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ tomorrow’s German trade balance report andÂ industrial production data.
TheÂ EUR/USD currency pair was trading atÂ 1.1815 asÂ atÂ 14:05 GMT having rallied from aÂ low ofÂ 1.1781. TheÂ EUR/JPY currency pair was trading atÂ 129.97 having risen from aÂ low ofÂ 129.52.
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