- ECB Stimulus Plans Impact
- Euro Strength
- Euro Economic Data Outlook
EUR/USD match higher continued to gather steam as euro strength continued to benefit from a weakened dollar. The pair is on an 11-week winning streak as traders remain optimistic about the Eurozone’s economy after the COVID-19 pandemic.
A spike to highs of $1.1240 marked a seventh-consecutive day of gains on the Euro. The pair benefited from weakness in the U.S dollar, which is reeling from widespread riots across the U.S.
Euro strength stems from traders reacting to policymakers push to support Eurozone weak economies with a wave of stimulus plans. The European Central Bank has already embarked on a debt buying spree that could top highs of $669 billion.
In addition, there are already talks that the ECB could increase the size of the Pandemic Emergency Purchase Programed by a further 500 billion euros. The push has continued to strengthen sentiments on the single currency conversely, sending the pair to 11-week highs.
Time : 04-06-2020
Pivot : $1.1221
Technical View : Long Above $1.1241
Target : $1.1261 next 2 targets are $1.1301 and $1.1336
Comments : Weak Bearish To Neutral
Last Price : $1.1202
Technical View : Short below $1.1201
Target : $1.1181 next 3 targets are $1.1168, $1.1142 and $1.1104
With the Euro on a winnings streak, the EUR/USD is set to continue edging higher amidst the Greenback’s weakness. The dollar has come under immense pressure in recent weeks amidst widespread riots across the U.S that raises serious doubt about economic recovery following the COVID-19 pandemic. Traders flocking riskier assets in the aftermath of the coronavirus assets has also seen a decline in demand for safe-haven assets, conversely sending the dollar lower.
Economic Data Watch list
Looking ahead, economic release, as well as commentary from the ECB, will influence a great deal the direction that the EUR/USD pair moves. On Thursday, traders await ECB monetary policy statements that will help shed light on the Eurozone economy.
While the ECB is expected to keep interest rates at current record lows, commentary around the rate decisions will influence euro strength. Initial jobless claims in the U.S later in the day should have an impact on the greenback strength conversely EUR/USD pair direction of trade.