The EUR/USD currency pair today rallied to new 4-month highs as the positive investor sentiment towards the single currency was carried over from 2017. The euro’s rally was also boosted by the in-line Eurozone PMI data released by Markit Economics early in the European session.
The EUR/USD currency pair today rallied by over 70 points from a daily low of 1.2006 hit in the Asian session to a high of 1.2080 in the mid-European session.
The currency pair benefited from the greenback’s overall weakness, which was extended from the last trading session of 2017. The release of the positive Markit Eurozone Manufacturing PMI, which came in in-line with expectations at 60.6, boosted the currency pair’s rally. The positive Markit/BME Germany Manufacturing PMI, which was recorded in-line with the market consensus at 63.3, also contributed to the pair’s rally. The Markit France and Italy Manufacturing PMI’s, which were below market expectations, could not derail the euro’s rally.
The selling bias around the greenback as tracked by the US Dollar Index was the major driver behind the currency pair’s rally; the DXY hit a daily low of 91.75 earlier in today’s session. The greenback’s weakness was largely fueled by declining US Treasury bond yields and although the yields staged a rebound at the time of writing, the pair’s decline was quite minimal.
The currency pair’s short-term performance is likely to be affected by the release of the US Markit Manufacturing PMI scheduled for 14:45 GMT.
The EUR/USD currency pair was trading at 1.2063 as at 11:56 GMT having rallied from a session low of 1.2006. The EUR/JPY currency pair was trading at 135.38 having dropped from a high of 135.62 earlier today.
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