The euro today rallied higher against the US dollar as some European countries announced new measures to ease some of the restrictions put in place to fight the coronavirus. The EUR/USD currency pair reversed yesterday’s downtrend and rallied higher today driven by investor optimism about a return to normalcy across the eurozone.
The currency pair rallied from a low of 1.0915 in the early European session to a high of 1.0983 in the American session but was off these highs at the time of writing.
The currency pair rallied higher at the start of today’s session before heading lower in the mid to late Asian session. However, the uptrend resumed in the European session as European countries announced new measures to ease some of the restrictions that were in place earlier; Italy allowed some shops to reopen after five weeks of lockdown. Spain has also allowed some businesses to resume operations while Denmark is planning to reopen schools for small children. However, the European Commission has warned that countries risk triggering a spike in new COVID-19 cases and deaths by easing lockdown measures now.
The currency pair’s rally was also aided by the greenback’s overall weakness as tracked by the US Dollar Index, which hit a low of 98.91 earlier today. The release of mixed US import and export prices report by the Bureau of Labor Statistics also boosted the pair.
The EUR/USD currency pair was trading at 1.0971 as at 17:14 GMT having rallied from a low of 1.0915. The EUR/JPY currency pair was trading at 117.45 having dropped from a high of 117.94.
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