The euro today rallied higher against the US dollar despite the mostly negative news coming out of the eurozone earlier today amid empty economic dockets. The EUR/USD currency pair inched higher as European countries moved closer to reopening their economies despite the significant risk of a second wave of COVID-19 infections.
The EUR/USD currency pair today rallied from a low of 1.0935 extending yesterday’s massive gains to reach a high of 1.0990 and was trading near these highs at the time of writing.
The single currency rallied higher today despite Germany reporting the highest number of new COVID-19 infections in five days earlier today, indicating that the country’s curve might be rising again. German Chancellor Angela Merkel had on Thursday agreed to reopen zoos, museums, and galleries; she also allowed the resumption of religious services. The currency pair also ignored a statement from the European Central Bank indicating that the eurozone economy might contract about 5â12% this year and will fully recover in 2022.
The pair also shrugged off comments from the ECB chief economist Philip Lane that the bank will keep adjusting its Pandemic Emergency Purchase Programme (PEPP) to close spreads during the crisis. The greenback’s overall weakness as tracked by the US Dollar Index, which hit a low of 98.86 earlier today also contributed to the pair’s rally.
The currency pair’s short-term performance is likely to be affected by the release of the US ISM manufacturing PMI and the Markit PMI set for release at 14:00 GMT.
The EUR/USD currency pair was trading at 1.0972 as at 11:58 GMT having risen from a low of 1.0935. The EUR/JPY currency pair was trading at 117.04 having dropped from a high of 117.50.
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