The euro today fell against the US dollar as deaths from the coronavirus in Spain reached new highs even as other European countries battle the disease. The EUR/USD currency pair today fell amid high demand for the dollar and the rising tensions in the European Union as Germany and Holland refuse to support Southern states.
The EUR/USD currency pair today fell from a high of 1.0964 in the late Asian session to a low of 1.0823 in the American session and was near these lows at the time of writing.
The currency pair today fell for the fourth straight session eroding over 61% of the gains it had made since bottoming on 23rd March. The pair’s decline was further fueled by the disagreement among European finance ministers on a bailout package for the poorer countries in the EU. The release of downbeat European producer price index data for March by Eurostat added to the pair’s woes; the PPI print came in at-0.6% versus the expected -0.2%.
Some analysts are predicting that the COVID-19 pandemic could break up the European Union as the more prosperous countries fail to help struggling economies. Investors are waiting to see if the Eurogroup shall reach an agreement on 7th April.
The pair kept falling despite US initial jobless claims data coming in at 6.6 million, exceeding initial estimates. The US Dollar Index‘s rally to a high of 100.42 also drove the pair lower.
The currency pair’s future performance is likely to be affected by tomorrow’s US non-farm payrolls report.
The EUR/USD currency pair was trading at 1.0838 as at 18:55 GMT, having dropped from a high of 1.0964. The EUR/JPY currency pair was trading at 116.92 having fallen from a high of 117.72.
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