Euro Rises on COVID-19 Vaccine Hopes and Positive Risk Sentiment

The euro today inched higher against the dollar as investor risk appetite increased slightly on hopes that the US Congress will reach a stimulus deal soon. The EUR/USD currency pair’s rally was also boosted by news regarding the approval of Pfizer’s COVID-19 vaccine in the US and the fast-tracking of the same in Europe.
The EUR/USD currency pair today rallied from a low of 1.2121 in the mid-European session to a high of 1.2168 in the American session and was near these highs at the time of writing.
The currency pair rallied higher today boosted by news that China’s retail sales grew 5% in November on an annualised basis, but this was not enough to sustain a rally. The pair later fell to its daily lows as the likelihood of a no-deal Brexit remained high after British Prime Minister Boris Johnson told ministers that the UK does not want a deal with the EU at any cost. The release of the French consumer price index report for November by Insee had a muted impact on the pair as did the release of Italy’s November inflation report by Istat; both prints meat expectations.
The pair did not benefit significantly from the greenback’s overall weakness as tracked by the US Dollar Index, which hit a low of 90.42 today. The rising number of European countries under lockdown also put a damper on the euro ahead of the festive season.
The currency pair’s future performance is likely to be affected by tomorrow’s Markit PMI data.
The EUR/USD currency pair was trading at 1.2156 as at 19:40 GMT having rallied from a low of 1.2121. The EUR/JPY currency pair was trading at 126.09 having dropped from a high of 126.58.
If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

Original from: www.earnforex.com