Euro Rallies Then Falls Against the US Dollar to Trade Flat for the Day

The  euro today fell against the  US dollar early in  the  European session despite the  release of  upbeat euro area producer price index data as  the  bears controlled the  price action. The  EUR/USD currency pair later rallied during the  American session as  the  dollar retreated against its peers amid falling US Treasury yields to  trade flat for  the  day.
The  EUR/USD currency pair today rallied to  a  high of  1.1806 in  the  European session before falling to  a  low of  1.1722 and  then recouping most of  its losses to  trade flat at  the  time of  writing.
The  currency pair rallied higher earlier today driven by  bullish investor sentiment amid expectations of  a  quick economic recovery in  the  eurozone. The  greenback’s overall weakness as  tracked by  the  US Dollar Index, which hit a  low of  93.28 today also fueled the  pair’s rally. The  release of  the  upbeat eurozone PPI data for  June by  Eurostat saw the  pair hit its daily highs before reversing and  heading lower. The  PPI print came in  at  0.7% versus the  expected 0.5% pushing the  single currency higher.
The  greenback’s sustained weakness after the  US open despite the  release of  the  positive US factory orders report for  June fueled the  pair’s second recovery. According to  the  Census Bureau, US factory orders grew 6.2% beating analysts expectations of  a  5% increase.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s multiple eurozone PMI reports.
The EUR/USD currency pair was trading at 1.1784 as at 17:40 GMT, having recovered from a low of 1.1722. The EUR/JPY currency pair was trading at 124.61, having fallen from a high of 125.00.
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