- EUIR / USD regains its balance in a weaker and lighter USD market.
- The Eurogroup has approved a rescue plan for a half-trillion euro coronavirus.
- Note also the data from the US CPI and the G20 energy summit.
After a brief period of consolidation in overnight transactions, EUR / USD caught a new wave of bidding and headed for weekly highs of 1.0951, as the US dollar continued to fall in all the domains.
US dollar hit by further Fed stimulus again
The main currency pair gained new momentum on Thursday and hit a new five-day high after the US dollar was widely sold in the Federal Reserve (Fed) further stimulus announcement to contain the economic spinoffs from the coronavirus pandemic. Infectious disease has affected far more than 1.5 million people worldwide, including more than 450,000 Americans.
The greenback also dealt a blow to the release of data on initial unemployment claims in the United States, which showed that new weekly claims exceeded 6 million for the second consecutive time last week. The US dollar index fell 0.06% to 99.46, after reaching a daily high of 99.63 in South Asia.
On the euro side of the equation, signs of new infections and deaths slowing through hot spots in Europe have raised sentiment around the common currency. Meanwhile, the news that the Eurogroup has finally reached half a trillion dollars in virus rescue further offers support to EUR bulls.
In the future, the dynamics of the USD and viral updates will continue to play a central role, as attention is focused on the American Consumer Price Index (CPI), the speech of Federic Mester and the G20 energy ministers’ meeting for a new trade boost.
EUR / USD technical levels to watch