Euro Rallies to New 32-Month Highs Against Dollar, Later Falls

The  euro today briefly rallied higher against the  dollar touching 32-month highs before reversing course and  heading lower as  the  greenback inched higher. The  EUR/USD currency pair fell despite the  release of  mixed data from across the  euro area as  Hungary continues to  oppose the  European Union budget.
The   EUR/USD currency pair rallied to  a  high of  1.2139 in  the  early Frankfurt session before giving up its gains and  dropping to  a  low of  1.2101 shortly thereafter and  was still lower for  the  day at  the  time of  writing.
The  currency pair headed higher today largely boosted by  the  positive investor sentiment amid a  mixed bag of  PMI releases from Markit Economics. The  release of  the  disappointing Markit Germany services and  composite PMIs for  November drove the  pair lower. Germany’s services PMI fell 0.2 to  46, while the  composite PMI came in  at  51.7 versus the  expected 52. The  upbeat Markit Eurozone services PMI, which came in  at  41.7 versus consensus estimates of  41.3 had a  muted impact on  the  pair. The  positive Markit France Services PMI, which came in  at  38.8 beating analysts estimates set at  38 also did not move the  pair.
The  euro recouped some of  its losses following the  release of  the  eurozone retail sales report for  October. According to  Eurostat, the  region’s retail sales grew 1.8% in  October beating consensus estimates of  a  0.8% expansion. Rising tensions between China and  the  US weighed on  the  euro.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s US non-farm payrolls and  German factory data.
The  EUR/USD currency pair was trading at  1.2116 as  at  11:07 GMT having dropped from a  high of  1.2139. The  EUR/JPY currency pair was trading at  126.35 having fallen from a  high of  126.65.
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