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EUR/USD has risen to the highest levels since January amid USD weakness. Coronavirus fears may turn from weighing on the dollar to boosting it, Yohay Elam from FXStreet reports.

Key quotes

“US dollar weakness is behind the surge. The greenback is falling amid rising hopes that the Federal Reserve cut rates imminently in response to the coronavirus outbreak.”

“Luis de Guindos, Vice President of the European Central Bank, has said that the response to the crisis should be a fiscal one, not a monetary one. His words added to the euro’s rise.” 

“Moreover, Europe’s economic situation is worse than that in America, and the illness is spread out across the continent. 

“Coronavirus headlines are set to dominate trading, with a short interval for the ISM Manufacturing Purchasing Managers’ Index.”