Euro Rallies on Upbeat Sentiment, Positive Euro Area PMIs and Weak Dollar
TheÂ euro rallied higher, boosted byÂ theÂ positive manufacturing PMI prints from across theÂ euro area released byÂ Markit Economics inÂ theÂ early European session. TheÂ EUR/USD currency pair also benefitted from theÂ dollar’s overall weakness driven byÂ falling US 10-year Treasury yields andÂ theÂ upbeat investor risk appetite.
TheÂ EUR/USD currency pair rallied from aÂ low ofÂ 1.1713 inÂ theÂ early Frankfurt market toÂ aÂ high ofÂ 1.1780 inÂ theÂ American session andÂ was trading near these highs atÂ theÂ time ofÂ writing.
TheÂ currency pair initially dipped lower before investor sentiment shifted inÂ favour ofÂ theÂ single currency. TheÂ release ofÂ theÂ disappointing German retail sales data forÂ February had aÂ muted impact onÂ theÂ pair. According toÂ theÂ Federal Statistical Office, Germany’s retail sales rose 1.2% inÂ February versus expectations ofÂ aÂ 2% increase. TheÂ release ofÂ theÂ in-line Markit/BME Germany Manufacturing PMI andÂ theÂ Markit Italy Manufacturing PMI also boosted theÂ euro. TheÂ upbeat Markit Eurozone Manufacturing PMI also supported theÂ pair’s rally. Investors ignored theÂ new lockdown measures inÂ France andÂ other European countries. TheÂ lagging COVID-19 vaccination numbers inÂ Europe also did not faze traders.
TheÂ fibre edged higher, boosted byÂ theÂ disappointing US initial jobless claims report. TheÂ upbeat ISM US Manufacturing PMI, which beat analysts expectations byÂ aÂ wide margin, had aÂ muted impact onÂ theÂ pair. TheÂ dollar’s overall weakness, asÂ tracked byÂ theÂ Dollar Index, fueled theÂ pair’s rally.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ theÂ release ofÂ US non-farm payrolls tomorrow.
TheÂ EUR/USD currency pair was trading atÂ 1.1768 atÂ 18:46 GMT after rallying from aÂ low ofÂ 1.1713. TheÂ EUR/JPY currency pair was trading atÂ 130.17, having risen from aÂ low ofÂ 129.65.
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Original from: www.earnforex.com
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