EUR/USD Rallies After Release of the Eurozone’s Current Account Balance

The EUR/USD currency pair rallied briefly earlier today after the release of the Eurozone’s current account balance, which recorded a minimal surplus, by the European Central Bank. The euro was stronger even as the US dollar came under renewed selling pressure during the early North American session.

The currency pair gained at least 50 points at the peak of its rally before retracing some of its gains to trade much lower at the time of writing.

The Eurozone’s current account balance for January dropped significantly to â‚¬2.5 billion from a revised December figure of â‚¬46.9 billion. However, the surplus still indicates that the Eurozone remains a net lender to the rest of the world as opposed to the USA, which typically records a large current account deficit.

The euro was further boosted by the positive performance of Emmanuel Macron in the first presidential debate as Marine Le Pen drops further in the French presidential race. The greenback was negatively affected by the uncertainty in the US regarding Donald Trump‘s economic policies as he faces significant opposition in his push to repeal Obamacare.

The currency pair’s future performance is likely to be affected by the release of Germany’s GfK consumer confidence survey for March, and the Eurozone’s consumer confidence index for March, both scheduled for tomorrow.

The EUR/USD was trading at 1.0809 as at 17:39 GMT having rallied from a low of 1.0773 prior to the ECB release. The EUR/GBP was trading at 0.8661 having retraced some of its gain from a high of 0.8700 at the peak of its rally.

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