EUR/USD witnessed some aggressive selling on Tuesday amid broad-based USD strength while Spanish government’s massive coronavirus stimulus provided some temporary respite for bulls.
Key quotes
“The shared currency was weighed down by awful German ZEW Survey results, which showed that economic sentiment dropped sharply to -49.5 in March from 8.7 previous.”
“Economic sentiment in the Eurozone collapsed to -49.5 and the current situation index fell to -48.5. This coupled with a strong pickup in the US dollar demand aggravated the intraday bearish pressure.”
“The disappointing release of the US monthly retail sales, which was largely offset by an upward revision of the previous month’s readings, did little to provide any meaningful impetus and passed unnoticed.”
“EUR/USD found some support around the 1.0955 region after the Spanish government finally announced a massive economic stimulus package to cushion the economic shock.”
“The upside seems more likely to remain limited amid some follow-through uptick in the US bond yields, which might continue to lend some support to the greenback.”
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