Euro Holds On to Gains After EU Migration Deal Amid Strong US PCE Data

The euro today held on to its gains in the American session despite the release of strong US inflation data, which boosted the greenback. The EUR/USD currency pair has rallied significantly higher overnight after European leaders finally reached a deal on Migration at the EU Summit.

The EUR/USD currency pair rallied from a low of 1.1564 to a high of 1.1666 gaining over 100 points in the Asian session and has been trading sideways since then.

The currency pair rallied higher after the EU-27 leaders emerged out of a nine-hour long meeting with an agreement on Europe’s migration problem. The deal was quite vague on any specific measures to be taken by European governments, but seemed to satisfy most parties including Angela Merkel‘s coalition partner the CSU, France’s Emmanuel Macron, and Italy’s Giuseppe Conte. Economic releases from across the Eurozone such as the positive German retail sales data released by the Federal Statistical Office had a muted impact on the currency pair. Other releases such as the upbeat German employment change report and the Eurozone CPI data released by Eurostat, which met expectations, also had a minimal impact on the pair.

The currency pair held on to most of its gains in the early American session despite the release of positive US Personal Consumption Expenditure data by the Bureau of Economic Analysis. The core US PCE price index met the Federal Reserve’s target of 2%.

The currency pair’s future performance is likely to be affected by geopolitical events over the upcoming weekend.

The EUR/USD currency pair was trading at 1.1657 as at 14:46 GMT having rallied from a daily low of 1.1564. The EUR/JPY currency pair was trading at 129.06 having risen from a low of 127.67.

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