The euro today traded sideways against the US dollar before falling to its daily lows in the mid-European session driven by the prevailing risk-off market sentiment. The EUR/USD currency pair recovered and rallied higher in the early American session following the release of the ECB Governor Christine Lagarde‘s testimony.
The EUR/USD currency pair today fell to a low of 1.0891 before reversing course and rallying to its daily high of 1.0925 and was trading near these highs at the time of writing.
The currency pair traded sideways from the start of today’s session amid a lack of significant releases from most European dockets, which left the pair susceptible to investor sentiment and news headlines. Investor fears about the rapid spread of the coronavirus infections and deaths, which now rival the much-dreaded 2003 SARS pandemic kept a lid on the pair’s upside potential. The pair started falling in the mid-European session and hit rock bottom in the early American session.
The pair started rallying after the release of Christine Lagarde’s prepared comments for her testimony before the European Parliament. The European Central Bank Governor asserted that the slowdown in the euro area was due to global factors and that authorities should not rely on monetary policy alone.
The pair entered a sideways trading range following the Fed Chair Jerome Powell’s testimony before the House Financial Services Committee, which painted a hawkish outlook on the American economy. Powell confirmed that the Fed would continue buying Treasury bills into Q2.
The currency pair’s future performance is likely to be affected by tomorrow’s eurozone industrial data and geopolitical events.
The EUR/USD currency pair was trading at 1.0918 as at 18:27 GMT having recovered from a low of 1.0891. The EUR/JPY currency pair was trading at 119.89 having risen from a low of 119.59.
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