The euro today traded in a wide range against the US dollar with a slightly bullish bias as markets reeled from the spreading coronavirus outbreak and the crash in oil prices. The EUR/USD currency pair today traded with a bullish bias as bears fought for control amid a major sell-off in global equity markets.
The EUR/USD currency pair today traded in a sizeable bullish range marked by a high of 1.1495 and an opening low of 1.1355 and was within this range at the time of writing.
The currency pair spiked to its daily highs at the start of today’s session as the oil markets were reeling from Saudi Arabia’s sudden price war against Russia. The pair traded with a bullish bias as investors sold the dollar amid expectations that the Federal Reserve will announce further easing measures. The euro’s strength over the dollar is primarily based on the fact that the European Central Bank has limited easing options at its disposal.
The pair posted gains after the release of Germany’s trade balance data for January by the Federal Statistical Office. Europe’s largest economy recorded an â¬18.5 billion surplus bettering analysts estimates pegged at â¬15.4 billion. Germany’s industrial production report also came in above expectations boosting the euro.
The pair’s gains came at the greenback’s expense as tracked by the US Dollar Index, which hit a low of 94.66. The rising coronavirus cases in major US cities also contributed to the greenback’s weakness.
The currency pair’s future performance is likely to be affected by geopolitical headlines and tomorrow’s eurozone GDP report.
The EUR/USD currency pair was trading at 1.1452 as at 17:13 GMT having risen from a low of 1.1355. The EUR/JPY currency pair was trading at 117.15 having rallied from a low of 116.11.
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