Euro Rallies on Upbeat Euro Area PMIs, Falls on FOMC Decision

The euro today surged higher against the dollar buoyed by the upbeat euro area PMI reports released by Markit Economics in the early European session. The EUR/USD currency pair later gave up most of its gains ahead of the US Federal Reserve‘s interest rate decision as the dollar inched higher before the announcement.
The EUR/USD currency pair today rallied to a high of 1.2211 in the early Frankfurt market before falling and trading slightly above its opening lows of 1.2144 at the time of writing.
The currency pair’s spike to its daily highs today coincided with the release of the upbeat Markit Germany Manufacturing and Services PMIs both of which beat analysts expectations. The upbeat Markit Eurozone Services and Manufacturing PMI prints also contributed to the currency pair’s rally. The upbeat Markit France Manufacturing and Services PMI prints also contributed to the pair’s upsurge. The lack of progress in the ongoing Brexit negotiations also weighed on the pair, which lost most of its shine as the day progressed.
The release of the downbeat US retail sales data by the Census Bureau in the early American session had minimal impact on the pair. However, the pair crashed lower following the FOMC interest rate decision as the dollar rallied higher on the announcement.
The currency pair’s future performance is likely to be influenced by tomorrow’s eurozone inflation data and US dollar dynamics.
The EUR/USD currency pair was trading at 1.2156 as at 19:40 GMT having fallen from a high of 1.2211. The EUR/JPY currency pair was trading at 126.06 having rallied from a low of 125.70.
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Original from: www.earnforex.com