The euro today rallied higher against the US dollar driven by upbeat investor risk sentiment in anticipation of the US-China phase one trade deal signing later today. The EUR/USD currency pair’s rally was also spurred by investor expectations that the European Central Bank could turn hawkish in the medium-term after a strategic review.
The EUR/USD currency pair today rallied from a low of 1.1119 in the early European session to a high of 1.1154 later in the session and was heading higher at the time of writing.
The currency pair rallied higher at the start of today’s session before falling to its daily lows and then rose for a second time. The release of the annualised German GDP growth data by the Federal Statistical Office in the early European session had a muted impact on the single currency. The pair rallied higher despite the release of the disappointing eurozone trade balance report for November by Eurostat. The weak eurozone industrial production data for November, also had a muted impact on the currency pair as investors kept pushing the pair higher.
Hawkish comments by Robert Holzmann a member of the ECB’s governing council also boosted the single currency as the ECB prepares to start its strategic review next week. The currency pair also benefited from the weak greenback as tracked by the US Dollar Index, which hit a low of 97.23.
The currency pair’s future performance is likely to be affected by geopolitical events and the release of the US PPI report later today.
The EUR/USD currency pair was trading at 1.1150 as at 12:20 GMT, having rallied from a low of 1.1119. The EUR/JPY currency pair was trading at 122.50, having risen from a low of 122.20.
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