EUR/USD Rallies Higher Despite Weak German IFO Survey Data

The EUR/USD currency pair today rallied higher despite the release of the disappointing German IFO business climate index early in the European session. The pair maintained its uptrend into the early North Americans session despite the release of positive US macro data.

The EUR/USD currency pair today rallied by over 55 points from a low of 1.2184 to trade at a high of 1.2243 at the time of writing.

The release of the German IFO Business Climate data triggered the pair’s decline in the early European session by coming in at 102.1, which was lower than the expected 102.8. The German IFO Expectations print also came in at 98.7 below the consensus estimate of 99.5. The German IFO Current Assessment also disappointed by coming in at 105.7 versus the expected 106. The currency pair’s rally was further triggered by the weakening of the US dollar during today’s session as it pared some of its previous gains against most of its peers, as tracked by the US Dollar Index, which hit a low of 90.73.

The currency pair maintained its uptrend during the early American session despite the release of positive new US residential sales data by the Census Bureau. The upbeat US consumer confidence index data released by the Conference Board triggered a slight dip in the pair, which soon reversed as the pair rallied higher.

The currency pair’s future performance is likely to be affected by investor sentiment towards the two currencies given tomorrow’s empty Eurozone economic dockets.

The EUR/USD currency pair was trading at 1.2235 as at 17:48 GMT having rallied from a daily low of 1.2184. The EUR/JPY currency pair was trading at 133.03 having risen from a low of 132.59.

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