Euro Surges to Multi-Year Highs Against Dollar as US PMI Misses

The  euro today rallied to  multi-year highs against the  dollar boosted by  the  positive investor risk sentiment amid heightened optimism about the  global economic recovery. The  EUR/USD currency pair’s rallied to  highs last seen in  Apil 2018 boosted by  the  dollar’s weakness and  mixed eurozone macro releases.
The  EUR/USD currency pair today rallied from an  opening low of  1.1937 in  the  Australian market to  a  high of  1.2053 in  the  American session and  was trading near these highs at  the  time of  writing.
The currency pair’s initial rally was boosted by the risk-on mood prevalent in the markets as investors anticipate multiple positive events, including Joe Biden’s incoming administration. The  release of  the  upbeat German unemployment rate by  the  Federal Statistical Office boosted the  pair as  the  print fell to  6.1% versus consensus estimates of  6.3%. The  release of  the  downbeat Markit Germany Manufacturing PMI, which came in  at  57.8 missing analysts estimate set at  57.9 had a  muted impact on  the  pair. The  upbeat Eurozone consumer price index report released by  Eurostat contributed to  the  pair’s gains.
The  weak Italian Q3 GDP data released by  Istat had a  minimal impact on  the  pair. The  release of  the  disappointing US ISM manufacturing PMI data, which came in  at  48.4 missing expectations set at  51.4 drove the  pair to  its multi-year highs. The  US Dollar Index crashed to  91.26 fueling the  pair’s rally.
The  currency pair’s future performance is likely to  be affected by  US dollar dynamics and  investor sentiment.
The  EUR/USD currency pair was trading at  1.2047 as  at  18:25 GMT having rallied from a  low of  1.1937. The  EUR/JPY currency pair was trading at  125.73 having risen from a  low of  124.50.  
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