Euro Rallies on ECB Comments and In-Line Eurozone Inflation Data

The  euro today inched higher against the  dollar as  rising eurozone coronavirus cases continued to  weigh on  the  single currency amid mixed inflation reports. The  EUR/USD currency pair was trading sideways earlier today before surging higher boosted by  positive comments from European Central Bank policymakers.
The  EUR/USD currency pair today rallied from a  low of  1.1694   in  the  early Frankfurt session to  a  high of  1.1739 in  the  mid-European session and  was near these highs at  the  time of  writing.
The risk-averse market sentiment fueled the currency pair’s initial range-bound trading as investors adopt a wait and see attitude ahead of  the  US Presidential elections. The rising EU coronavirus cases, coupled with the lack of progress in Brexit talks, kept a lid on the single currency. The release of Italy’s consumer price index report for  September drove the  pair lower. According to  Istat, Italy’s inflation fell by  0.7% versus the  expected 0.6%. The  release of  the  in-line eurozone inflation report for  September released by  Eurostat boosted the  pair. The  core inflation print came in  at  0.1%, while the  headline figure was 0.2%; both prints met expectations.
Comments from ECB Governing Council member, François Villeroy de Galhau that the  bank’s current accommodative stance was appropriate fueled the  pair’s rally. The  greenback’s decline as  tracked by  the  US Dollar Index, which hit a  high of  93.59, also contributed to  the  pair’s rally.  
The  currency pair’s future performance is likely to  be affected by  the  release of  US retail sales data at  12:30 GMT.
The  EUR/USD currency pair was trading at  1.1736 as  at  12:05 GMT having rallied from a  low of  1.1694. The  EUR/JPY currency pair was trading at  123.57 having risen from a  low of  123.11.
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