- EUR/USD regains poise amid weaker USD, light trading.
- Eurogroup agreed half a trillion euro coronavirus rescue plan.
- Next of note remains the US CPI data and G20 Energy Summit.
Following a brief consolidative stint in the overnight trades, EUR/USD caught a fresh bid-wave and headed back towards the weekly tops of 1.0951, as the US dollar resumed the decline across the board.
US dollar knocked-off again by Fed’s extra stimulus
The main currency pair got a fresh boost on Thursday and reached a new five day high after the US dollar was broadly sold-off into the US Federal Reserve’s (Fed) additional stimulus announcement to contain the economic fallout of the coronavirus pandemic. The infectious disease has by far affected more than 1.5 million people worldwide, including over 450K Americans.
The greenback also dealt a blow from the US Initial Jobless Claims data release, which showed that the weekly new claims topped 6 million for the second straight time last week. The US dollar index drops 0.06% to 99.46, having hit a daily high at 99.63 in early Asia.
On the EUR-side of the equation, signs of new infections and deaths tally slowing across the hotspots in Europe lifted the sentiment around the common currency. Meanwhile, the news that the Eurogroup finally reached a half a trillion euros virus rescue package further offers support to the EUR bulls.
Looking ahead, the USD dynamics and virus updates will continue to play a pivotal role, as attention shifts to the US Consumer Price Index (CPI), Fed’s Mester’s speech and the G20 energy ministers meeting for fresh trading impulse.
EUR/USD technical levels to watch