EUR/USD added to its recent strong gains and remained well supported by persistent USD selling. Market participants now look forward to important macro releases for a fresh directional impetus, Haresh Menghani from FXStreet reports.
Key quotes
“The shared currency remained supported by hopes that Germany’s Finance Minister will ease fiscal spending restrictions in order to help local governments and boost its flagging economy.”
“The preliminary German consumer inflation figures, showing that the headline CPI is expected to rise 0.4% MoM and 1.7% YoY in February, did little to provide any meaningful impetus.”
“The prevailing US dollar selling bias, amid firming market expectations that the Fed will cut interest rates in March to shield the economy from the rapid spread of the coronavirus, was seen as one of the key factors driving the pair higher.”
“The greenback witnessed some intraday bounce, albeit lacked any follow-through, rather met with some fresh supply after the Fed Chair Jerome Powell said that the central bank will ‘act as appropriate’ to support the economy and offset the risks posed by the coronavirus epidemic.”
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