Euro Falls on Low Liquidity and Market Sentiment, Rallies on US Data

The  euro today rallied from its daily lows following the  release of  weak US durable goods orders in  the  early American session. The  EUR/USD currency pair had fallen earlier in  the  session amid low liquidity ahead of  the  Christmas holiday break.
The EUR/USD currency pair today fell to a low of 1.1070 in the mid-European session before rallying to a high of 1.1095 in the American session but was off these highs at the time of writing.
The  currency pair traded sideways at  the  start of  today’s session and  attempted to  rally higher before dropping to  its daily lows. The  pair’s performance was primarily driven by  the  risk-off market sentiment and  the  low liquidity levels in  the  market. The  release of  the  German import price index for  November by  the  Federal Statistical Office resulted in  an  intra-day high for  the  pair. Germany’s import prices rose 0.5% beating consensus estimates of  a  0.4% expansion. The  pair’s bottom coincided with the  US Dollar Index‘s peak at 97.81 before it reversed and headed higher.
The  pair rallied higher after the  release of  the  US durable goods orders for  November by  the  Census Bureau. The  headline print came in  at  -2% missing analysts expectations set at  1.5% by  a  wide margin. The  US new home sales report for  November also missed expectations boosting the  pair.
The currency pair’s future performance is likely to be affected by geopolitical events given the empty European dockets due to the Christmas holiday celebrations.
The  EUR/USD currency pair was trading at  1.1090 as  at  17:25 GMT having rallied from a  low of  1.1070. The  EUR/JPY currency pair was trading at  121.28 having risen from a  low of  121.08.

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