Euro Rises Then Falls on Rising Coronavirus Cases and Equities Sell-Off

The  euro today rallied against the  US dollar earlier in  the  session before falling later during the  American session as  the  global equities sell-off deepened. The  EUR/USD currency pair headed lower as  European stock markets closed in  the  red and  American markets opened lower later in  the  day.
The  EUR/USD currency pair today rallied to  a  high of  1.1366 in  the  early European session before falling to  a  low of  1.1257 in  the  American session and  was near these lows at  the  time of  writing.
The  currency pair edged higher at  the  start of  today’s session, driven by  positive investor sentiment before quickly heading lower in  the  early European session. The  decline was attributed to  the  rising coronavirus cases in  most European countries led by  Italy, which is currently on  a  countrywide lockdown. Other countries such as  Spain have reported more instances of  the  COVID-19 coronavirus even as  Hungary declared a  state of  emergency and  banned university classes.
German Chancellor Angela Merkel‘s comments indicating that a  large proportion of  Germany’s population could be infected with the  virus did not help. The  announcement of  â‚¬25 billion funds to  fight the  coronavirus by  the  European Union also left investors unimpressed.
The  release of  the  upbeat US consumer price index report for  February by  the  Bureau of  Labor Statistics had a  muted impact on  the  pair as  the  US Dollar Index kept falling at  the  time.
The  EUR/USD currency pair was trading at  1.1282 as  at  17:34 GMT, having fallen from a  high of  1.1366. The  EUR/JPY currency pair was trading at  118.21, having dropped from a  high of  119.23.

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