Euro Rallies on Upbeat Sentiment, Positive Data, and Yellen Testimony

The euro today rallied higher against the dollar fueled by the risk-on investor sentiment and positive macro releases from various European dockets. Janet Yellen’s testimony further boosted the EUR/USD currency pair’s rally as the incoming US Treasury Secretary favours additional spending.
The EUR/USD currency pair rallied from an opening low of 1.2077 in the Australian session to a high of 1.2144 in the American market before retracing some of its gains by the time of writing.
The currency pair’s initial rally was fueled by the elevated investor risk appetite boosted by Janet Yellen’s testimony ahead of her testimony. The release of the in-line German consumer price index report for December by the Federal Statistical Office also drove the pair higher. News that German Chancellor Angela Merkel wants to extend the lockdown measures up to February 15 caped the euro’s gains.
The euro extended its gains after the Eurozone current account data for November and the European Central Bank‘s lending survey also boosted the pair. The release of the upbeat German ZEW economic sentiment survey also fueled the pair’s rally.
The pair rallied higher as Janet Yellen started testifying before Congress. The incoming Treasury chief said that Congress should approve additional stimulus spending given the low-interest environment. The greenback’s retreat as tracked by the US Dollar Index also boosted the pair.
The currency pair’s future performance will likely be affected by tomorrow’s German PPI and eurozone inflation report.
The EUR/USD currency pair was trading at 1.2126 as at 20:17 GMT having risen from a low of 1.2077. The EUR/JPY currency pair was trading at 125.97 having rallied from a low of 125.23.
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Original from: www.earnforex.com