Euro Rallies on Upbeat German GDP, Jobs, and Import Data

The euro rallied higher against the dollar boosted by the upbeat German Q4  GDP report, which beat analysts’ expectations after the German economy expanded. The EUR/USD currency pair’s rally was fueled by other positive reports from across the euro area and the positive investor sentiment, which boosted risky assets.
Today, the EUR/USD currency pair fell to a low of 1.2094 in the late Asian market before rallying to a high of 1.2151 in the early American session and was headed higher at the time of writing.
The currency pair’s initial decline was fueled by investor caution over the volatile market action drive by retail traders squeezing out hedge funds and other institutional players. The pair started rallying following the release of the upbeat French Q4 GDP data by Insee, which came in at -1.3% versus consensus estimates of -4%. The release of the downbeat German import price index report for December had a muted impact on the currency pair.
The upbeat German unemployment change report, which saw the unemployment rate fall to 6% after the creation of 47,000 jobs also drove the pair higher. The positive German Q4 GDP data released by the Federal Statistical Office, which came in at 0.1% versus the expected flat reading also lifted the pair.
The release of the upbeat US personal consumption expenditure index for December the Bureau of Economic Analysis had a muted impact on the pair; the PCE index rose 0.3% beating analysts’ estimates of a 0.1% increase.
The currency pair’s short-term performance is likely to be affected by the UoM consumer confidence index.
The EUR/USD currency pair was trading at 1.2153 at 14:22 GMT having rallied from a low of 1.2094. The EUR/USD currency pair was trading at 127.27 having risen from a low of 126.36.
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Original from: www.earnforex.com