The euro today fell against the US dollar as traders took their profits following 4-day rally marked by steady gains driven by positive investor sentiment. The EUR/USD currency pair headed lower as the greenback rallied higher amid rising coronavirus cases and deaths in Spain and Italy.
The EUR/USD currency pair today fell from a high of 1.1086 in the Asian session before falling to a low of 1.0952 in the early American session but was off these lows at the time of writing.
The currency pair rallied to new 2-week highs in the Asian session buoyed by the weak dollar before reversing course and heading lower. The pair’s gains over the past four days were primarily driven by the Fed’s massive quantitative easing measures coupled with President Donald Trump‘s $2 trillion fiscal stimulus package. The release of the upbeat March consumer confidence report from France by Insee could not stop the single currency’s decline. The weak March Italian business confidence report released by Istat had a muted impact on the pair. The rising coronavirus cases in European countries also dampened investor sentiment towards the pair.
The greenback’s recovery as tracked by the US Dollar Index, which hit a high of 99.81 earlier today also contributed to the pair’s decline. The release of the upbeat US personal consumption expenditure report by the Bureau of Economic Analysis also drove the pair lower.
The currency pair’s future performance is likely to be affected by the US House vote on the stimulus package and geopolitical events over the upcoming weekend.
The EUR/USD currency pair was trading at 1.0988 as at 14:41 GMT having fallen from a high of 1.1086. The EUR/JPY currency pair was trading at 118.85 having dropped from a high of 120.71.
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