Euro Rallies Higher Ahead of Mario Draghi Speech, Later Declines

The euro today opened higher against the US dollar following the disappointing US unemployment data released on Friday. The single currency rallied higher ahead of Mario Draghi‘s speech, but later declined due to a resurgence in demand for the US dollar in the American session.

The EUR/USD currency pair today rallied from a low of 1.1750 to a high of 1.1790 before heading lower and giving up most of its gains.

The currency pair today headed higher boosted by the weaker greenback and the positive German economic data released by the Federal Statistical Office. The German trade balance for May came in at €20.3 billion, which was slightly higher than the expected €20.0 billion print. German exports also grew by 1.8% in March versus the consensus estimate of 0.7% growth. German imports also beat expectations by recording 0.7% expansion as opposed to the expected 0.5% contraction. The Eurozone Sentix investor confidence index released today also beat expectations by coming in at 12.1 versus the expected 9.0.

The European Central Bank Governor Mario Draghi’s speech before the European Parliament in Brussels also boosted the euro. He stated that the underlying fundamentals in the euro area were solid and reiterated his pledge to keep rates unchanged up to the summer of 2019. The pair headed lower shortly after as the greenback rallied higher as tracked by the US Dollar Index, which hit a high of 94.07.

The currency pair’s future performance is likely to be affected by tomorrow’s German ZEW survey and US JOLTS job openings data.

The EUR/USD currency pair was trading at 1.1759 as at 15:06 GMT having declined from an intra-day high of 1.1790. The EUR/JPY currency pair was trading at 130.18 having risen from a low of 129.67.

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