Euro Rallies on Coronavirus Vaccine News, Later Falls on Upbeat US PMI

The  euro today rallied higher against the  US dollar in  the  first half of  today’s session boosted by  investor optimism about a  potential coronavirus vaccine. The  EUR/USD currency pair later reversed course during the  American session and  turned negative for  the  day on  the  upbeat US PMI data, which boosted the  dollar.
The  EUR/USD currency pair today rallied to  a  high of  1.1905 in  the  mid-European session before reversing course and  falling to  a  low of  1.1800 during the  American market.
The  currency pair’s initial rally was boosted by  news that AstraZeneca’s COVID-19 vaccine had proven 90% effective in  clinical trials. The  vaccine developed in  collaboration with Oxford University is the  third such treatment following similar announcements from Moderna and  Pfizer/BionTech. The  release of  the  upbeat Markit preliminary Germany Manufacturing PMI, which came in  at  57.9 versus the  expected 56.5 also boosted the  pair. The  upbeat Markit Eurozone Manufacturing PMI also boosted the  pair. However, the  services PMIs from Germany and  the  broader euro area were below expectations limiting the  euro’s gains. A  speech by  the  ECB’s Isabel Schnabel had a  muted impact on  the  single currency.
The  fibre crashed to  its daily lows following the  release of  the  upbeat Markit Flash US Manufacturing PMI, which came in at 56.7 beating analysts estimates set at 53. The same was true of the US Services PMI, which came in at 57.7 versus consensus estimates of 55.3.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s German GDP data and  IFO expectations survey.
The  EUR/USD currency pair was trading at  1.1837 as  at  17:45 GMT having fallen from a  high of  1.1905. The  EUR/JPY currency pair was trading at  123.48 having rallied from a  low of  123.11.
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