- Eurozone COVID-19 Response
- Eurozone Economic Recovery Impact
- Non-Farm Payroll
EUR/USD edged higher, Thursday morning, after recording its biggest two-month gains, against the dollar. A strengthened EUR continues to offer support for further upside action, as traders remain confident about Europe’s pandemic response.
The Euro has continued to strengthen even on the dollar edging higher amidst a spike in risk aversion in the market. The greenback has received support as a second wave of coronavirus infections forces traders into safe-havens. However, that has not stopped the Euro from strengthening across the board.
Time : 07-02-2020
Pivot : 1.1241
Technical View : Long Above 1.1261
Targets : 1.1281 – 1.1313 – 1.1337 – 1.1394
Comments : Bullish
Last Price: 1.1291
Traders in the currency market are confident that governments within the Eurozone are doing enough to protect the public from a second wave threatening to bring the U.S to a standstill. The block avoiding a second wave would go a long way in supporting accelerated economic recovery in the wake of recent upbeat economic releases.
French manufacturing PMI coming in at 52.3 than 52.1 and German PMI registering a small contraction of 45.2 affirmed the ongoing economic recovery. The overall Eurozone PMI improved to 47.4, signaling a softer deterioration in business conditions. Likewise, it confirms that the EU economy is resilient amid the COVID-19 pandemic, which continues to offer support to the Euro.
Accelerated economic recovery should support large capital inflows likely to continue offering support to the EUR against the dollar. Amidst the economic recovery boost, the Euro has avoided losses against the dollar despite risk sentiments surging in the market in the wake of the U.S registering record numbers of new coronavirus cases at 50,000 on Wednesday.
By shrugging off the risk sentiment in which the U.S dollar tends to thrive in, the EUR/USD has continued to hold on to gains conversely surging to a three-week high. Better than expected economic releases should continue to offer support to the pair ahead of a spike to one-month highs.
Thursday promises to be a busy day for EUR/USD with the release of the EURO area unemployment rate. Focus will also be on the U.S Non-Farm Payroll report as well as the Unemployment rate likely to sway trader’s sentiments on the EUR/USD.