Euro Rallies to 1-Week Highs Driven by Investor Risk Appetite

The euro today rallied against the US dollar despite the release of mixed macro prints from across the euro area driven by the resurgent investor risk appetite. The EUR/USD currency pair’s rally was also boosted by the greenback’s selloff, which started yesterday amid hopes of a US coronavirus stimulus package.

The EUR/USD currency pair today rallied from a low of 1.1665 in the early Frankfurt market to a high of 1.1743 in the American session and was trading near these highs at the time of writing.

The currency pair’s rally was driven mostly by positive investor sentiment despite existing concerns about the rising coronavirus cases. The release of upbeat Spanish flash consumer price index report for September by the National Institute of Statistics also boosted the pair. The positive Italian producer price index report released by Istat also lifted the single currency. The fibre’s positive momentum was further boosted by the positive eurozone economic sentiment and business climate indicator released by the European Commission.

The disappointing German flash consumer price index report released by the Federal Statistical Office did not affect the pair’s rally. The release of the US goods trade balance report by the Bureau of Economic Analysis had a muted impact on the pair, which kept rallying.

The currency pair’s future performance is likely to be affected by tomorrow’s German retail sales and unemployment reports.

The EUR/USD currency pair was trading at 1.1742 as at 18:40 GMT, having rallied from a low of 1.1665. The EUR/JPY currency pair was trading at 124.09, having risen from a low of 123.03.

© SimonMugo for Forex News, 2020. |
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Post tags: Advance Goods Trade Balance, Bureau of Economic Analysis, Consumer Price Index, EUR/JPY, EUR/USD, European Commission, Eurozone, Federal Statistical Office, Istat, National Institute of Statistics, PPI, Risk Appetite

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