The euro today rallied against the US dollar buoyed by the latter’s decline as investors favoured riskier currencies including the single currency. The EUR/USD currency pair hit new 3-day highs ending the downtrend that was in place for the past six sessions.
The EUR/USD currency pair today rallied from an opening low of 1.0790 to a high of 1.0925 in the American session but had pulled back slightly from its daily highs at the time of writing.
The currency pair rallied from the start of today’s session as markets reacted to yesterday’s gains across most equity markets resulting in bullish investor sentiment. The release of upbeat German industrial production data for February by the Federal Statistical Office also boosted the pair. Germany saw a 0.3% increase in production as opposed to the expected 0.9% decline as the impact of the coronavirus pandemic in Europe was not factored in at the time. Investors ignored the rising coronavirus deaths in Spain as other European countries seem to be flattening the curve. The bullish sentiment carried over to the equities market where most European stock indices closed higher for the day.
The pair benefitted immensely from the greenback’s weakness as tracked by the US Dollar Index. The fact that coronavirus cases and deaths in the US are rising also boosted the pair given the declining deaths across Europe. Investors are hoping that the worst is over for Europe.
The currency pair’s future performance is likely to be affected by COVID-19 related news given tomorrow’s empty dockets.
The EUR/USD currency pair was trading at 1.0901 as at 18:19 GMT having rallied from a low of 1.0790. The EUR/JPY currency pair was trading at 118.60 having risen from a low of 117.50.
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