EUR/USD: The wind currently blowing in favor of the euro

The safe-haven US dollar has been gaining ground as doubts about a coronavirus vaccine increased. However, EUR/USD only dropped to 1.0920 before bouncing. Speculation about the EU fund, Fed minutes, and coronavirus statistics are eyed, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“The common currency is shrugging off fears that the Franco-German agreement for a €500 billion fund will run into trouble. A group of four EU hardliners – Austria, the Netherlands, Denmark, and Sweden – is set to publish a rival proposal later in the day.Negotiations may drag on for several weeks yet investors are betting that the Berlin-Paris axis will get its way.”

“The Fed will release its meeting minutes from the rate decision in late April, and sub-zero rates are of high interest. If several officials support setting sub-zero rates, the dollar may plunge, but that seems unlikely.”

“Germany’s estimated virus reproduction rate remains below 1, another positive development as the country opens up. New figures from Spain, Italy, and France are due out later in the day and may move the euro.”