Euro Falls After 4-Day Rally Amid Rising European Coronavirus Cases

The euro today fell against the US dollar as traders took their profits following   4-day rally marked by steady gains driven by positive investor sentiment. The  EUR/USD currency pair headed lower as  the  greenback rallied higher amid rising coronavirus cases and  deaths in  Spain and  Italy.
The  EUR/USD currency pair today fell from a  high of  1.1086 in  the  Asian session before falling to  a  low of  1.0952 in  the  early American session but was off these lows at  the  time of  writing.
The  currency pair rallied to  new 2-week highs in  the  Asian session buoyed by  the  weak dollar before reversing course and  heading lower. The  pair’s gains over the  past four days were primarily driven by  the  Fed’s massive quantitative easing measures coupled with President Donald Trump‘s $2 trillion fiscal stimulus package. The  release of  the  upbeat March consumer confidence report from France by  Insee could not stop the  single currency’s decline. The  weak March Italian business confidence report released by  Istat had a  muted impact on  the  pair. The  rising coronavirus cases in  European countries also dampened investor sentiment towards the  pair.
The  greenback’s recovery as  tracked by  the  US Dollar Index, which hit a  high of  99.81 earlier today also contributed to  the  pair’s decline. The  release of  the  upbeat US personal consumption expenditure report by  the  Bureau of  Economic Analysis also drove the  pair lower.
The  currency pair’s future performance is likely to  be affected by  the  US House vote on  the  stimulus package and  geopolitical events over the  upcoming weekend.
The  EUR/USD currency pair was trading at  1.0988 as  at  14:41 GMT having fallen from a  high of  1.1086. The  EUR/JPY currency pair was trading at  118.85 having dropped from a  high of  120.71.

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