Euro Rallies to 3-Month Highs on Upbeat Euro Area Data Releases

The euro today rallied to new highs last seen on September 1st against the weak dollar boosted by upbeat macro reports from the euro area. The EUR/USD currency pair today rallied higher boosted by the upbeat French GDP report and other positive data from other EU countries.
The EUR/USD currency pair today rallied from a low of 1.1909 in the Australian market to a high of 1.1961 in the early American session and was trading near these highs at the time of writing.
The positive investor sentiment initially drove the currency pair’s rally during the Asian session. The release of the upbeat German import price index by the Federal Statistical Office had a mildly positive impact on the pair as the print beat expectations. The positive French GDP report combined with the country’s upbeat consumer price index data, both released by Insee, also pushed the euro higher. The upbeat eurozone economic sentiment and business climate indicators released by the European Commission had a minimal impact on the pair as did the in-line consumer confidence data.
Rising coronavirus cases in Germany, which forced German Chancellor Angela Merkel to extend the lockdown to December 20 hindered the pair’s gains. The greenback’s overall weakness as tracked by the US Dollar Index, which hit a low of 91.75 today, also fueled the pair’s rally.
The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events and US dollar dynamics.
The EUR/USD currency pair was trading at 1.1955 as at 18:01 GMT having risen from a low of 1.1909. The EUR/JPY currency pair was trading at 124.38 having rallied from a low of 123.89.
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