The euro today rallied higher against the US dollar on news of a possible cure for the novel coronavirus, which saw investors bid up riskier assets such as the single currency. The EUR/USD currency pair was also boosted by investor optimism regarding the outcome of the ongoing recovery talks between finance ministers from the European Union‘s member countries.
The EUR/USD currency pair today rallied from a low of 1.1255 in the late Asian market to a high of 1.1324 in the early American session but was off these highs at the time of writing.
The currency pair headed lower earlier in the session driven by negative investor sentiment before reversing course just before the European session. The lack of releases from the European docket meant that the single currency was vulnerable to geopolitical events. Investors bid up the pair as the EcoFin meeting started expecting a positive outcome, but were disappointed as they have to wait for next week’s meeting between country leaders. However, investors hope that Germany’s Angela Merkel and France’s Emmanuel Macron will get the deal they want.
The pair kept rallying after the release of the US producer price index report for June by the Bureau of Labor Statistics. The print mostly missed expectations driving the US Dollar Index to its daily lows of 96.44.
The currency pair’s future performance over the upcoming weekend is likely to be affected by geopolitical events.
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