- ECB Stimulus Plans
- EUR Longest Rally
- Focus on U.S NFP And Employment Data
EUR/USD11-week winning streak received a boost on the European Central Bank moving to prop the Eurozone economy, struggling with the worst recession in over 80 years. The pair rose to levels last seen before the COVID-19 pandemic started causing havoc as the ECB bolstered its emergency bond purchase scheme by €600 million.
The gains in the EUR/USD pair continued in the early Friday session, with the pair rallying by more than 0.3%, touching highs of $1.1383. The pair 11-week winning streak has also benefited from a weakened U.S Dollar, being hammered as the global economy bounces off the COVID-19 pandemic.
The ECB moving to cushion some of the worst-hit economies by the COVID-19 pandemic is the latest catalysts fuelling the buying spree on the single currency. The ECB has already confirmed plans to spend up to €1.35 trillion to revitalize the EU economy.
The stimulus package has gone to fuel the longest euro rally in more than a decade with the EUR/USD pair climbing for the ninth consecutive day. The rally has also coincided with an uptick in economic activity around the Eurozone block. The easing of lockdown restrictions has seen the reopening of businesses and factories initially closed to curb the spread of the deadly coronavirus.
How quickly the EUR/USD pair continues to edge higher will depend on economic data that hit the wire going forward. While economic data has improved significantly in recent weeks, they are still a shadow of the pre-coronavirus levels.
Looking ahead, traders await the Italian retail sales report that could influence Euro strength in the market. The market expects a contraction of 19% compared to a contraction of 20% reported last month.
However, it is the non-farm employment change report in the US. That could influence a great deal of how the EUR/USD closes the week. Later in the day, the U.S also reports the Unemployment rate and average hourly earnings, expected to shed more light on the health of the U.S economy.