Euro Rallies on Positive Sentiment, Ignores Upbeat US Inflation Data

The  euro today rallied higher against the  US dollar driven by  the  risk-on market sentiment, which saw the  dollar lose ground against riskier assets such as  the  single currency. The  EUR/USD currency pair today rallied ignoring weak data from the  euro area, and  upbeat inflation data from the  US as  investors bid up the  currency pair as  European equities rallied.
The  EUR/USD currency pair today fell to  a  low of  1.1711 in  the  Asian session before rallying to  a  high of  1.1816 in  the  American market but was below the  crucial 1.18 resistance level at  the  time of  writing.
The  currency pair rallied higher driven by  the  resurgence investor risk appetite, which saw risk assets such as  the  EURO STOXX 600 and  the  Japanese Nikkei 225 index close higher. The  currency pair ignored the  release of  the  disappointing Italian consumer price index report for  July. According to  Istat, Italy’s headline inflation contracted 0.2% versus the  expected 0.1% print, translating into an  annualised -0.5% versus consensus estimates of  -0.4%. The  weak eurozone industrial production data for  July also had a  muted impact on  the  pair. According to  Eurostat, the  eurozone’s industrial production rose 9.1% missing consensus estimates of  10%.
The  currency pair ignored the  upbeat US consumer price index report for  July released by  the  Bureau of  Labor Statistics. The  greenback’s weakness as  tracked by  the  US Dollar Index, which hit a  low of  93.27, also fueled the  pair’s rally.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s German and  US releases.
The EUR/USD currency pair was trading at 1.1794 as at 18:17 GMT, having rallied from a low of 1.1711. The EUR/JPY currency pair was trading at 126.01, having risen from a low of 124.94.
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