Euro Hits Daily Highs on Fed Rate Decision and Mixed Eurozone Data

The euro today rallied to new daily highs against the US dollar following the FOMC rate decision, which was in line with analysts consensus estimates. The EUR/USD currency pair today alternated between gains and losses driven by mixed fundamental releases from across the eurozone.
The EUR/USD currency pair today rallied from an opening low of 1.0830 to a high of 1.0881 after the Fed’s decision and was trading near these highs at the time of writing.
The currency pair’s movements earlier today were driven by multiple factors including investor sentiment and the mixed euro area macro reports. The pair spiked higher in the early European session despite the release of weak German import price index data by the Federal Statistical Office; the print came in at -3.5% versus the expected -2.5%. Spain’s March retail sales report also missed consensus estimates by contracting 14.1% as compared to the expected 1.7% growth. The Eurozone consumer confidence, business climate, and economic sentiment indicators all missed expectations dragging the pair lower.
The preliminary German consumer price index report for April released by the Federal Statistical Office beat expectations indicating that the German economy was recovering.
The pair spiked higher after the Federal Open Market Committee announced its monetary policy decision as they left interest rates at 0.25%. Fed Chairman Jerome Powell reported that the US economy would contract significantly in Q2 as more industries are impacted by the coronavirus pandemic.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple eurozone releases and geopolitical events.
The EUR/USD currency pair was trading at 1.0874 as at 18:59 GMT having rallied from a low of 1.0830. The EUR/JPY currency pair was trading at 115.90 having risen from a low of 115.44.

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Original from: www.earnforex.com