Euro Rallies Against Dollar on Falling Treasury Yields, German Trade Data

The euro edged higher against the dollar, reversing a four-day losing streak boosted by the positive investor sentiment and falling US Treasury yields. The EUR/USD currency pair rallied higher, fueled by the positive German trade data combined with the dollar’s overall weakness, adding to the pair’s gains.
The EUR/USD currency pair rallied from a low of 1.1835 in the Australian market to a high of 1.1915 in the mid-Frankfurt session but was off the highs at the time of writing.
The currency pair’s rally was fueled by the dollar’s weakness as tracked by the US Dollar Index, which hit a low of 91.91 today. The elevated investor risk appetite also contributed to the pair’s rally as riskier currencies posted gains. The release of the upbeat Germany trade balance report for January also boosted the pair. According to the Federal Statistical Office, Germany recorded a trade surplus of €22.2 billion, beating consensus estimates of €16.2 billion. Eurostat’s release of the downbeat Eurozone Q4 GDP data as the final print came in at -0.7% versus the preliminary -0.6% halted the pair’s rally briefly. The upbeat eurozone employment change data cushioned the pair.
The release of the NFIB US business optimism index for February had a muted impact on the fibre. The euro’s rally was supported by investor optimism about the ongoing coronavirus vaccination programmes and the expected global economic recovery.
The currency pair’s future performance will likely be affected by tomorrow’s US inflation data given the empty European dockets.
The EUR/USD currency pair was trading at 1.1894 at 18:59 GMT, having rallied from a low of 1.1835. The EUR/JPY currency pair was trading at 129.00 after falling from a high of 129.54.
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Original from: www.earnforex.com