Euro Recovers From Fresh 2020 Lows on ECB Chief Lagarde’s Testimony

The  euro today traded sideways against the  US dollar before falling to  its daily lows in  the  mid-European session driven by  the  prevailing risk-off market sentiment. The  EUR/USD currency pair recovered and  rallied higher in  the  early American session following the  release of  the  ECB Governor Christine Lagarde‘s testimony.
The  EUR/USD currency pair today fell to  a  low of  1.0891 before reversing course and  rallying to  its daily high of  1.0925 and  was trading near these highs at  the  time of  writing.
The  currency pair traded sideways from the  start of  today’s session amid a  lack of  significant releases from most European dockets, which left the  pair susceptible to  investor sentiment and  news headlines. Investor fears about the  rapid spread of  the  coronavirus infections and  deaths, which now rival the much-dreaded 2003 SARS pandemic kept a lid on the pair’s upside potential. The pair started falling in the mid-European session and hit rock bottom in the early American session.
The  pair started rallying after the  release of  Christine Lagarde’s prepared comments for  her testimony before the  European Parliament. The  European Central Bank Governor asserted that the  slowdown in  the  euro area was due to  global factors and  that authorities should not rely on  monetary policy alone.
The  pair entered a  sideways trading range following the  Fed Chair Jerome Powell’s testimony before the  House Financial Services Committee, which painted a  hawkish outlook on  the  American economy. Powell confirmed that the  Fed would continue buying Treasury bills into Q2.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s eurozone industrial data and  geopolitical events.
The  EUR/USD currency pair was trading at  1.0918 as  at  18:27 GMT having recovered from a  low of  1.0891. The  EUR/JPY currency pair was trading at  119.89 having risen from a  low of  119.59.

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