- EUR/USD buyers defend the 1.1900 level broken during the NY session
- Dollar Index crashes to new lows for the year
- US Housing Starts to provide more clarity to the price action
Tuesday morning saw the single currency for 19 EU member countries well supported by renewed buying activity which pushed the pair to levels not seen since mid-May 2018.
EUR/USD Supported by Dollar Weakness
The EUR/USD exchange rate charged into the green territory for the 9th consecutive week keeping the bullish momentum that started since mid-June intact. The fundamental backdrop surrounding the Euro is supportive of the pair.
Besides the renewed dollar weakness that supports the EUR/USD buyers, that pair has found additional support on the back of investor appetite for riskier assets. The global risk appetite improved on the back of the COVID-19 vaccine hopes that eye year-end launches.
The euro-dollar pair decisive break above the 1.1900 figure was the catalyst that propped EUR/USD to break to fresh new highs for 2020. The EUR/USD bullish stance is simply a continuation of the trend that started at the beginning of July. The upside has prevailed in the pair due to a combination of fundamental factors including the broad-based dollar selling, improved risk sentiment and positive economic data supporting faster post-COVID crisis recovery.
Elsewhere, the historic EU recovering fund helped scrap the political uncertainty that clouded the 28-nation bloc steering the EUR/USD bullish momentum.
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