Euro Rises to 6-Week Highs on Upbeat Euro Area Data, Risk-On Sentiment

The euro soared against the dollar amid a series of upbeat macro releases from across the euro area combined with the positive investor sentiment. The EUR/USD currency pair’s rally was also boosted by positive comments from a senior European Central Bank policymaker and the dollar’s weakness.
The EUR/USD currency pair rallied from an initial low of 1.2155 during the Australian market to a high of 1.2242 in the early American session but was slightly off the highs at the time of writing.
The elevated investor risk appetite initially fueled the currency pair’s rally amid optimism about the ongoing COVID-19 vaccination campaign, and the global economic recovery also lifted the euro. The release of Germany’s GfK consumer confidence survey for March, which came in at -12.9 versus consensus estimates of -14.3, contributed to the pair’s rally. The upbeat Italian business and consumer confidence report released by Istat also boosted the euro. The eurozone M3 Money supply data for January released by the ECB also lifted the pair, as did the upbeat eurozone economic sentiment indicator and the in-line consumer confidence index, both of which were released by the European Commission.
The fibre edged higher after the ECB chief economist Philip Lane said that easy monetary policies would continue for a while. The pair dipped lower after the release of the upbeat US initial jobless claims report and the in-line preliminary US Q4 GDP report.
The currency pair’s future performance is likely to be affected by tomorrow’s German, French and US macro reports and geopolitical events.
The EUR/USD currency pair was trading at 1.2235 as at 17:23 GMT after rallying from a low of 1.2155. The EUR/JPY currency pair was trading at 129.92, having risen from a low of 128.88.
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