Euro Crashes Against Resurgent Dollar Despite Upbeat Euro Area Prints

Today, the euro fell to new 5-day lows against the resurgent dollar despite the release of multiple positive macro reports from across the euro area. The greenback’s surprise rally further fueled the EUR/USD currency pair’s decline despite market conditions favouring riskier assets.
The EUR/USD currency pair fell from a high of 1.2136 in the early Asian market to a low of 1.2061 in the American market and was near these lows at the time of writing.
The currency pair’s initial rally was driven by a shift in investor sentiment favouring the dollar as the vaccine rollout in Europe is off to a slow start compared to the US. The release of downbeat German retail sales data for December also weighed on the dollar. According to the Federal Statistical Office, Germany’s retail sales fell 9.6% in December versus analysts estimates of a 2.3% decline. The release of the upbeat Markit/BME Germany Manufacturing PMI, which came in at 57.1 beating consensus estimates by 0.1 had a muted impact on the pair.
The positive Markit Eurozone Manufacturing PMI recorded at 54.8 versus the expected 54.7 also had a minimal impact on the pair. Eurostat’s in-line eurozone unemployment rate report, which came in at 8.3% barely moved the pair.
The disappointing US ISM Manufacturing PMI release in the American session had a muted impact on the pair despite the print coming in at 58.7 versus consensus estimates of 60.
The currency pair’s future performance is likely to be affected by tomorrow’s eurozone GDP report and US dollar dynamics.
The EUR/USD currency pair was trading at 1.2061 as at 20:35 GMT having fallen from a high of 1.2136. The EUR/JPY currency pair was trading at 126.57 having dropped from a high of 127.04.
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Original from: www.earnforex.com