Euro Rallies Against Dollar on Upbeat German Inflation, Positive Mood

The euro today rallied against the dollar boosted by the positive investor sentiment despite the rising coronavirus cases and lockdown measures in Europe. The EUR/USD currency pair’s rally as also fueled by the positive releases from across the euro area including Germany’s inflation data among others.
The EUR/USD currency pair today rallied from a low of 1.1758 in the late Asian session to a high of 1.1823 in the mid-Frankfurt session before proceeding to trade sideways up to the time of writing. 
The currency pair rallied higher today reversing yesterday’s decline and was booted by the release of the German inflation report for October. According to the Federal Statistical Office, Germany’s CPI expanded 0.1% in October, translating to annualised -0.2%; both prints were in-line with expectations. The pair kept rallying following the release of the European Central Bank’s latest economic bulletin. The disappointing eurozone industrial production report for October, which was lower than expected coincided with the currency pair’s top. According to Eurostat, the region’s industrial production contracted 0.4% versus the expected 0.7% expansion. 
The release of the upbeat US initial jobless claims report by the Department of Labor, which came in at 6.786 million versus the expected 6.9 million caused the pair to trade sideways. The dovish speech by ECB Governor Christine Lagarde also contributed to the single currency’s stagnation.
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 1.1802 as at 17:44 GMT having dropped from a high of 1.1823. The EUR/JPY currency pair was trading at 124.17 having fallen from a high of 124.50.
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Original from: www.earnforex.com