EUR/USD: Better bid as Gilead coronavirus drug offers hope

• EUR/USD has erased a major portion of losses seen on Thursday.
• Dollar is being offered on promising signs for coronavirus treatment. 
• Light data docket leaves the pair at the mercy of the broader market sentiment.

EUR/USD is reversing Thursday’s losses as the greenback is on the offer amid risk-on triggered by renewed hopes for coronavirus treatment. 

Euro gains 0.30%

The currency pair is trading at 1.0867 at press time, representing a 0.30% gain on the day, and has recovered nearly 50 percent of the decline from 1.0911 to 1.0817 seen Thursday. 

The safe-haven American dollar is being offered across the board, as the US stock futures and the Asian equities are gaining altitude on optimism generated by the headline from STAT news that Gilead Sciences’ experimental drug remdesivir is seeing rapid recoveries in fever and respiratory symptoms associated with the coronavirus. 

Tentative steps to reopen the economy announced by the US President Donald Trump may be adding to bullish pressures around equities. It’s worth noting that China reported a bigger-than-expected 6.8% contraction in the gross domestic product for the first quarter during the Asian trading hours. However, Gilead news overshadowed the dismal data and kept risk assets buoyed. 

The market mood is likely to stay pro-risk in Europe. As a result, EUR/USD could continue to gain altitude. On the data front, the Eurozone Consumer Price Index (CPI) is due for release, while the US data calendar is light with just Baker Hughes US Oil Rig Count number expected to hit the wires at 17:00 GMT. 

Technical levels