Euro Rallies Against US Dollar on German GDP and IFO, Later Falls

The euro today rallied higher against the US dollar boosted by positive investor sentiment as the US and China reported progress in the latest round of trade talks. The EUR/USD currency pair later gave up its gains after the release of mixed US data amid a lack of volatility in the Forex market ending up slightly higher.
The EUR/USD currency pair today rallied to a high of 1.1843 from an opening low of 1.1783 in the Asian market before giving up most of its gains later.
The heightened investor risk appetite fueled the company’s initial rally during the Asian session. The release of upbeat final German Q2 GDP data drove the pair higher. According to the Federal Statistical Office, Germany’s GDP fell 9.7% in Q2 versus the expected 10.1% decline boosting the euro. The release of the upbeat German IFO business climate and current assessment reports also contributed to the pair’s rally. However, the future expectations print missed expectations by 0.5. The pair’s movements were mirrored by the greenback as tracked by the US Dollar Index, whose chart was the inverse of the fibre’s.
The fibre headed lower during the American session following the release of the US new home sales data for July by the Census Bureau. The announcement of the positive US consumer confidence survey for August by the Conference Board drove the pair lower. 
The currency pair’s future performance is likely to be affected by tomorrow’s US durable goods orders report.
The EUR/USD currency pair was trading at 1.1816 as at 17:54 GMT, having rallied from a low of 1.1782. The EUR/JPY currency pair was trading at 125.80, having risen from a low of 124.94.
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