The euro today rallied against the dollar due to the positive investor sentiment, which saw risk assets rally despite the coronavirus situation in Europe. The EUR/USD currency pair’s rally was also boosted by the upbeat inflation reports from Spain and France despite other disappointing macro reports.
The EUR/USD currency pair today rallied from a low of 1.1799 in the Asian session before rallying to a high of 1.1834 in the mid-European market and was near these highs at the time of writing.
The positive investor mood drove the currency pair’s initial rally, and the release of the mixed German wholesale price index for October did not stop its ascent. According to the Federal Statistical Office, Germany’s wholesale prices contracted 0.2%, translating to an annualised 1.9%. The release of France’s consumer price index by Insee helped the pair by staying flat instead of the expected 0.1%. The release of Spain’s inflation report for October, which came in at 0.5% also boosted the pair. The release of the disappointing eurozone Q3 GDP coincided with the pair’s top. According to Eurostat, the euro areas GDP expanded 12.6% missing expectations by 0.1%.
The release of the mixed US producer price index by the Bureau of Labor Statistics had a muted impact on the pair. The disappointing University of Michigan US consumer sentiment survey pushed the pair to its previous highs.
The currency pair’s performance over the upcoming weekend is likely to be affected by US dollar dynamics.
The EUR/USD currency pair was trading at 1.1827 as at 18:52 GMT having rallied from a low os 1.1799. The EUR/JPY currency pair was trading at 123.76 having fallen from a high of 124.31.
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