As the number of coronavirus cases and deaths slow, the Euro is pushing higher versus the US Dollar. The Euro US Dollar exchange rate is edging cautiously higher at the start of the new week, after plunging 3% across the previous week.
At 08:30 UTC, EUR/USD is trading +0.1% at US$1.0817, off the overnight high of US$1.0836 amid improving coronavirus numbers and ahead of European investor sentiment data.
German Factory Orders Beat Forecasts
The mood in the global financial markets has turned positive amid signs that the coronavirus outbreak is easing in Europe. Italy and Spain both reported a substantial slowdown in new coronavirus deaths. France and Germany are both also showing a substantial flattening of the curve. There is light appearing at the end of the coronavirus tunnel and Italy is even considering how to end its lock down. This is a very different position compared to two weeks earlier.
Better than forecast German factory data has also helped underpin the euro this morning. German factory orders fell by -1.4% month on month in March. This was better than the -2.4% analysts expected, but down significantly from last month’s 4.8% increase.
Investors will now turn towards Eurozone investor sentiment data which is due to reveal a huge decline in sentiment amid the ongoing lock down of Eurozone economies.
Safe Haven US Dollar Slips On Improved Market Mood
The US Dollar is trading broadly flat at the start of the new week as improved investor sentiment means that the dollars’ safe haven properties are not in demand. The better mood in the markets comes even as the US braces itself for the worst week in fighting Covid-19. US coronavirus cases have passed 300,000 and the death tolls has reached 10,000.
President Trump has floated the idea of sending more cash to Americans. This comes after data on Friday revealed that 701,000 US jobs were lost in the US in March., according to the US non-farm payroll report. However, the data only measures up until 12th March, which means next month’s report will reveal a truer picture over the extent of the coronavirus hit to the US economy.
