Euro Rallies on Upbeat PMIs, Quickly Falls on Coronavirus Headlines

The euro today spiked higher against the US dollar in the early European session following the release of upbeat eurozone PMIs by Markit Economics. However, the EUR/USD currency pair’s rally was short-lived since the pair fell shortly afterwards after news of rising coronavirus infections in South Korea damped investor risk appetite.
The EUR/USD currency pair today rallied to a high of 1.0820 after the PMI releases before quickly falling to trade near its opening low of 1.0787 and was trading near this low at the time of writing.
The currency pair traded with a slightly bullish bias during the Asian session before spiking higher in the early European session. The release of the Markit flash Germany Manufacturing PMI, which came in at 47.8 versus consensus estimates of 44.8. However, Germany’s services PMI missed expectations by coming in at 53.3 versus expectations set at 53.8. The release of the upbeat eurozone preliminary manufacturing PMI, which was recorded at 49.1 beating analysts’ estimates of 47.5, had a muted impact on the falling pair. The pair’s muted reaction also extended to the positive eurozone services PMI print.
The currency pair extended its decline despite the release of upbeat eurozone consumer price index report for January by Eurostat. Both the headline and core inflation prints met analysts’ expectations by coming in at -1% and -1.7% respectively. The US Dollar Index‘s recovery from its daily lows drove the pair’s decline.
The currency pair’s short-term performance is likely to be affected by Markit US PMI releases and geopolitical events.
The EUR/USD currency pair was trading at 1.0803 as at 11:26 GMT having fallen from a high of 1.0820. The EUR/JPY currency pair was trading at 120.76 having risen from a low of 120.35.

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Original from: www.earnforex.com