- EUR/USD is hovering at 1.0915m, having hit a low of 1.0891 on Tuesday.
- Powell’s upbeat comments likely weakened the haven demand for US dollars.
- Notable bounce may remain elusive if the Eurozone data prints below estimates.
EUR/USD is holding above 1.09, having found takers below the psychological support on Tuesday.
The EUR and most other currencies gained ground against the US dollar during the North American session as Federal Reserve’s Chairman Jerome Powell downplayed the coronavirus impact on the US economy, fueling a move higher in the equities.
The risk sentiment was also boosted by Chinese President Xi’s comments that his country would win the battle against the virus and be more prosperous afterward.
Powell will be testifying again before Senate on Wednesday and will likely reiterate what he said on Tuesday.
The single currency will remain better bid if the equities continue to gain altitude on the notion that the coronavirus contagion rate is slowing. The risk currencies like the NZD and the AUD picked up a bid in Asia and are reporting solid gains at press time.
However, if the Eurozone industrial production tanks more-than-expected, the single currency may buck the risk-on trend in equities and commodity dollars and revisit support at 1.0879 (Oct. 1 low).