Euro Recovers From Daily Lows on Fed Emergency Rate Cut

The  euro today spiked higher against the  US dollar in  the  early American session after the  Federal Reserve announced an  emergency interest rate cut of  50 basis points. The  EUR/USD currency pair extended its positive streak for  the  fourth consecutive day having embarked on  a  significant rally since 21st February when the  greenback turned bearish.
The  EUR/USD currency pair today spiked to  a  high of  1.1213 after the  Fed rate cut having traded in  negative territory up to  that point; the  pair had hit a  low of  1.1095 before the  spike.
The  currency pair today traded in  negative territory for  most of  the  European session amid coronavirus headlines. The  pair had a  muted reaction to  the  release of  the  in-line eurozone consumer price inflation data by  Eurostat. The  inflation data met expectations by  coming in  at  1.2% for  both the  core and  headline prints. However, the  eurozone producer price index missed expectations even as  the  unemployment rate came in  at  7.4% in-line with consensus estimates. The  currency pair was rallying again at  the  time of  writing as  news emerged that Germany was considering a  stimulus move to  combat the  coronavirus outbreak.
The  pair spiked to  its daily highs after Jerome Powell the  Fed Chairman announced the  emergency rate cut and  hinted at  further quantitative easing measures shortly. The  US Dollar Index fell to  a  low of  96.99 and  was near these lows at  the  time of  writing.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s multiple euro area PMI releases and  news headlines.
The  EUR/USD currency pair was trading at  1.1189 as  at  19:09 GMT having risen from a  low of  1.1095. The  EUR/JPY currency pair was trading at  119.74 having dropped from a  high of  120.96.

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