Euro Rallies Against US Dollar on German GDP and IFO, Later Falls

The  euro today rallied higher against the  US dollar boosted by  positive investor sentiment as the  US and  China reported progress in  the  latest round of  trade talks. The  EUR/USD currency pair later gave up its gains after the  release of  mixed US data amid a  lack of  volatility in  the  Forex market ending up slightly higher.
The  EUR/USD currency pair today rallied to  a  high of  1.1843 from an  opening low of  1.1783 in  the  Asian market before giving up most of  its gains later.
The heightened investor risk appetite fueled the company’s initial rally during the  Asian session. The  release of  upbeat final German Q2 GDP data drove the  pair higher. According to  the  Federal Statistical Office, Germany’s GDP fell 9.7% in  Q2 versus the  expected 10.1% decline boosting the  euro. The  release of  the  upbeat German IFO business climate and  current assessment reports also contributed to  the  pair’s rally. However, the  future expectations print missed expectations by  0.5. The  pair’s movements were mirrored by  the  greenback as  tracked by  the  US Dollar Index, whose chart was the  inverse of  the  fibre’s.
The  fibre headed lower during the  American session following the  release of  the  US new home sales data for  July by  the  Census Bureau. The announcement of  the  positive US consumer confidence survey for  August by  the  Conference Board drove the  pair lower.  
The  currency pair’s future performance is likely to  be affected by  tomorrow’s US durable goods orders report.
The  EUR/USD currency pair was trading at  1.1816 as  at  17:54 GMT, having rallied from a  low of  1.1782. The  EUR/JPY currency pair was trading at  125.80, having risen from a  low of  124.94.
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