Euro Rallies Despite Gloomy News From Across the Euro Area

The  euro today rallied higher against the  US dollar despite the  mostly negative news coming out of  the  eurozone earlier today amid empty economic dockets. The  EUR/USD currency pair inched higher as  European countries moved closer to  reopening their economies despite the  significant risk of  a  second wave of  COVID-19 infections.
The  EUR/USD currency pair today rallied from a  low of  1.0935 extending yesterday’s massive gains to  reach a  high of  1.0990 and  was trading near these highs at  the  time of  writing.
The  single currency rallied higher today despite Germany reporting the  highest number of  new COVID-19 infections in  five days earlier today, indicating that the  country’s curve might be rising again. German Chancellor Angela Merkel had on  Thursday agreed to  reopen zoos, museums, and  galleries; she also allowed the  resumption of  religious services. The  currency pair also ignored a  statement from the  European Central Bank indicating that the  eurozone economy might contract about 5–12% this year and  will fully recover in  2022.
The  pair also shrugged off comments from the  ECB chief economist Philip Lane that the  bank will keep adjusting its Pandemic Emergency Purchase Programme (PEPP) to  close spreads during the  crisis. The  greenback’s overall weakness as  tracked by  the  US Dollar Index, which hit a  low of  98.86 earlier today also contributed to  the  pair’s rally.
The  currency pair’s short-term performance is likely to  be affected by  the  release of  the  US ISM manufacturing PMI and  the  Markit PMI set for  release at  14:00 GMT.
The  EUR/USD currency pair was trading at  1.0972 as  at  11:58 GMT having risen from a  low of  1.0935. The  EUR/JPY currency pair was trading at  117.04 having dropped from a  high of  117.50.

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