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EUR/USD is trading above 1.13 after surging and correcting some of its gains. President Lagarde’s speech today could send the euro higher once again on another reminder that austerity is dead, Yohay Elam, an analyst at FXStreet, informs.

Key quotes

“Christine Lagarde, President of the ECB, is set to testify today and remind investors that both monetary and fiscal stimuli have been ramped up – to the delight of bulls. Lagarde’s testimony will likely include calls for governments to do more to speed up the recovery from the crisis.” 

“The NFP data allowed the dollar a much-needed correction as it lessens the need for further monetary stimulus from the Fed, which announces its decision this week. It may also slow lawmakers’ gradual grind toward another fiscal stimulus package.” 

“Ongoing protests against racial discrimination may convince elected officials to move faster. Massive peaceful demonstrations were seen across the US, nearly two weeks after the killing of George Floyd, an unarmed black man, at the hands of the police. The events have yet to impact markets, but if they accelerate government spending, it would weigh on the safe-haven dollar.”