Euro Rallies as Coronavirus Fears in the US Push the Dollar Lower

The euro today rallied higher against the US dollar as authorities in California declared a state of emergency amid rising coronavirus cases. The EUR/USD currency pair benefitted from the risk-off investor sentiment and the greenback’s losses despite a mostly empty European docket.
The EUR/USD currency pair today rallied from a low of 1.1119 in the early European session to a high of 1.1200 in the early American session despite the risk-off market mood.
The currency pair traded sideways at the start of today’s session before dipping lower in the late Asian session. The pair later recovered in the early European session as investors reacted to the rising global coronavirus cases. The situation in the US triggered a sell-off in the greenback as experts warned that the virus could spread quickly across the country. Comments from Michel Barnier the chief EU Brexit negotiator stating that a deal with the UK was possible seemed to please investors amid a lack of European releases.
The currency pair was trading in positive territory at the time of writing having reversed yesterday’s losses as the US Dollar Index traded in negative territory. The release of disappointing US initial jobless claims data by the Department of Labor also contributed to the pair’s gains.
The currency pair’s future performance is likely to be affected by geopolitical events and tomorrow’s US non-farm payrolls report.
The EUR/USD currency pair was trading at 1.1180 as at 15:39 GMT having risen from a low of 1.1119. The EUR/JPY currency pair was trading at 119.39 having fallen from a high of 119.97.

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