The euro today rallied higher against the US dollar after the US Federal Reserve announced a $2.3 trillion stimulus package to aid small businesses. The EUR/USD currency pair hit a new weekly high boosted by the risk-on market mood as global equities rallied higher.
The EUR/USD currency pair today rallied from a low of 1.0841 in the late Asian session to a high of 1.0951 in the American session and was trading near these highs at the time of writing.
The currency pair today traded in a range with a slightly bullish bias during the Asian session as the bulls and bears fought for control. The release of the upbeat German trade balance report for February triggered the pair’s recovery from its daily lows. According to Germany’s Federal Statistical Office, the country’s trade surplus was 21.6 billion versus the expected 17.5 billion. Germany’s exports grew by 1.3% in February beating analysts expectations of a 0.9% decline. The upbeat industrial output data from Italy had a muted impact of the pair despite Istat reporting that the print came in at -1.2% in February beating consensus estimates set at -1.7%.
The pair spiked to its daily highs after the US Fed announced its latest stimulus package in the form of additional lending for small and medium-sized businesses. Investor flocked to riskier assets after the Fed’s announcement ignoring the COVID-19 headlines from Europe as the dollar fell pushing the pair higher.
The currency pair’s performance over the upcoming Easter holiday is likely to be influenced by geopolitical events and coronavirus news.
The EUR/USD currency pair was trading at 1.0927 as at 18:53 GMT having rallied from a low of 1.0841. The EUR/JPY currency pair was trading at 118.48 having risen from a low of 118.07.
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