The Euro is advancing versus the US Dollar on Friday, snapping a 3-day losing streak. The Euro US Dollar exchange rate is on the rise as the broader mood in the market improves.
At 07:45 UTC EUR/USD is +1% at US$1.0820. The pair trades at the upper end of its daily range. However, the Euro is still on track for a loss in the region of 2.5% across the week. This would be its second straight week of losses.
Euro Gains As Italy Calls For More Funds
The Euro is trending higher on the final trading day of the week. Sentiment is improving after central banks across the globe showed that they are prepared react rapidly and aggressively to cushion the impact of the coronavirus outbreak on their economies. These actions have provided some respite, improving the mood across the board.
Italy continues to live a nightmare. The number of daily deaths have outpaced those in China. The Italian Prime Minister Giuseppe Conte has called on the EU to do more and to use its powerful credit fund to release lines of credit to all member states. He is referring to the European Stability Mechanism which was created in 2012 during the eurozone sovereign crisis.
Germany producer price data went by unnoticed, declining -0.4% month on month in February. Investors will start to pay more attention to data from March which will reveal the impact of the coronavirus outbreak.
US Dollar Eases Risk Sentiment Lifts
The dollar has surged across the week as fears over the economic impact of coronavirus have seen investors sell out of alomst everything in order to buy into the safe haven dollar. However, today, the improved mood in the market has eased demand for the dollar overnight and in early trade on Friday.
The US Senate is debating a $1 trillion economic stimulus plan aimed to bring direct financial relief to American people and businesses, in a bid to stem the economic fallout from the coronavirus pandemic. Whilst a vote on the economic rescue package could still be days away, the fact it is moving through the relevant processes is helping risk sentiment.
The US economic calendar is light with just February’s new home sales. This is unlikely to catch much attention.
