Euro Rallies on Reports of COVID-19 Cure and In-Line Eurozone CPI

The  euro today rallied higher against the  US dollar driven by  bullish investor sentiment amid hopes that a  cure for  the  coronavirus was on  the  horizon. The  EUR/USD currency pair initially fell as  the  greenback rallied before changing course and  surging higher as  risk-appetite improved.
The  EUR/USD currency pair today fell to  a  low of  1.0812 in  the  early European session before rallying to  a  high of  1.0892 in  the  American session but was off these highs at  the  time of  writing.
The  currency pair’s rally coincided with the  opening of  the  European session as  equity markets across the  euro area posted gains. These gains were attributed to  a  report suggesting that Remdesivir, a  drug developed by  Gilead Sciences, was treating COVID-19 patients. The  news led to  a  relief rally among riskier assets such as  the  euro and  global equities. The  release of  mostly in-line eurozone consumer price index report for  February by  Eurostat also boosted the  pair. The  headline inflation print came in  at  0.5%, while the  core CPI print came in  at  1.1% as  both prints met expectations.
The  pair’s gains were capped by  the  disagreement on  coronabonds among EU finance ministers. The  greenback’s sell-off as  tracked by  the  US Dollar Index, which hit a  low of  99.62 earlier today also contributed to  the  pair’s rally. The  fact that some European countries such as  Germany are relaxing lockdown measures also boosted the  pair.
The  currency pair’s performance over the  upcoming weekend is likely to  be affected by  geopolitical events.
The  EUR/USD currency pair was trading at  1.0867 as  at  16:55 GMT having rallied from a  low of  1.0812. The  EUR/JPY currency pair was trading at  116.93 having risen from a  low of  116.62.

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