The euro today rallied higher against the US dollar mainly boosted by weak US Treasury yields, which contributed significantly to the greenback’s overall weakness. The release of the German CPI data for December could have also contributed to the single currency’s rally despite recording a slight decline.
The EUR/USD currency pair rallied by over 70 points from its daily low of 1.1936 reached during the Asian session to hit a high of 1.2011 in the American session.
The euro’s rally against the US dollar was largely driven by positive investor sentiment towards the single currency and boosted by the weak greenback. The release of the flash German CPI data by the Federal Statistical Office also contributed to the pair’s rally. The CPI data came in at 0.6% on a monthly basis, which was higher than the previous 0.3%. However, the CPI decelerated on an annualized basis as it was recorded at 1.7%, which was higher than the expected 1.5%, but lower than the previous 1.8% print.
The greenback was largely weaker against the euro for most of today’s session as tracked by the US Dollar Index, which hit a low of 92.17 earlier today. The lack of macroeconomic releases from the US docket also contributed to the pair’s rally.
The currency pair is om track to close this week at its highest level since September barring any negative political or security developments in the Eurozone.
The EUR/USD currency pair was trading at 1.2006 as at 16:21 GMT having rallied from a daily low of 1.1936. The EUR/JPY currency pair was trading at 135.25 having risen from a low of 134.54.
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