Euro Rallies on Hopes That Europe Is Flattening the COVID-19 Curve

The euro today rallied against the US dollar buoyed by the latter’s decline as investors favoured riskier currencies including the single currency. The EUR/USD currency pair hit new 3-day highs ending the downtrend that was in place for the past six sessions.
The  EUR/USD currency pair today rallied from an  opening low of  1.0790 to  a  high of  1.0925 in  the  American session but had pulled back slightly from its daily highs at  the  time of  writing.
The  currency pair rallied from the  start of  today’s session as  markets reacted to  yesterday’s gains across most equity markets resulting in  bullish investor sentiment. The  release of  upbeat German industrial production data for  February by  the  Federal Statistical Office also boosted the  pair. Germany saw a  0.3% increase in  production as  opposed to  the  expected 0.9% decline as  the  impact of  the  coronavirus pandemic in  Europe was not factored in  at  the  time. Investors ignored the  rising coronavirus deaths in  Spain as  other European countries seem to  be flattening the  curve. The  bullish sentiment carried over to  the  equities market where most European stock indices closed higher for  the  day.
The  pair benefitted immensely from the  greenback’s weakness as  tracked by  the  US Dollar Index. The  fact that coronavirus cases and  deaths in  the  US are rising also boosted the  pair given the  declining deaths across Europe. Investors are hoping that the  worst is over for  Europe.
The  currency pair’s future performance is likely to  be affected by  COVID-19 related news given tomorrow’s empty dockets.
The  EUR/USD currency pair was trading at  1.0901 as  at  18:19 GMT having rallied from a  low of  1.0790. The  EUR/JPY currency pair was trading at  118.60 having risen from a  low of  117.50.

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