The euro today spiked higher against the US dollar in the early American session after the Federal Reserve announced an emergency interest rate cut of 50 basis points. The EUR/USD currency pair extended its positive streak for the fourth consecutive day having embarked on a significant rally since 21st February when the greenback turned bearish.
The EUR/USD currency pair today spiked to a high of 1.1213 after the Fed rate cut having traded in negative territory up to that point; the pair had hit a low of 1.1095 before the spike.
The currency pair today traded in negative territory for most of the European session amid coronavirus headlines. The pair had a muted reaction to the release of the in-line eurozone consumer price inflation data by Eurostat. The inflation data met expectations by coming in at 1.2% for both the core and headline prints. However, the eurozone producer price index missed expectations even as the unemployment rate came in at 7.4% in-line with consensus estimates. The currency pair was rallying again at the time of writing as news emerged that Germany was considering a stimulus move to combat the coronavirus outbreak.
The pair spiked to its daily highs after Jerome Powell the Fed Chairman announced the emergency rate cut and hinted at further quantitative easing measures shortly. The US Dollar Index fell to a low of 96.99 and was near these lows at the time of writing.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple euro area PMI releases and news headlines.
The EUR/USD currency pair was trading at 1.1189 as at 19:09 GMT having risen from a low of 1.1095. The EUR/JPY currency pair was trading at 119.74 having dropped from a high of 120.96.
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