EUR/USD remains heavy below 1.1100 amid broad USD strength, ahead of Trump
- EUR/USD dumped amid coronavirus-led broad USD strength.
- Fed relaunched QE, but failed to impress.
- Virus updates, USD dynamics to lead the way ahead of Trump’s speech.
As the USD bulls remain unstoppable so far this Friday’s American session, EUR/USD remains heavily offered amid growing coronavirus risks globally. At the time of writing, the spot is few pips off the 1.1063 low and trades near 1.1075, still down 1% on a daily basis.
The number of virus cases internationally is picking up rapidly, with Spain likely to declare a state of emergency as early as Saturday while US President Trump is also seen announcing a national emergency at his news conference scheduled later today at 1900 GMT.
Therefore, the virus scare has brought the haven demand for the US dollar back in play, as the US dollar index rallied to a fresh two-week high of 98.64, gaining 1.10% on the day. Further, the rebound in the US stocks and equity futures seems to fuel the uptick in the US Treasury yields, which further adds to the bullish tone around the buck.
Meanwhile, the New York Federal Reserve (Fed) relaunched its QE program, announcing buying Treasuries to address highly unusual disruptions in the market, which did help lift the sentiment on Wall Street but felt to calm the coronavirus fears.
Recall that, on Thursday, the European Central Bank (ECB) announced an additional EUR 120bn in asset purchases through the end of the year. Additionally, the ECB announced very cheap LTRO loans through June, as well as an easing of the TLTRO-III conditions and costs for the period June 2020 to June 2021.
All eyes now remain on Trump’s presser and incoming coronavirus headlines for fresh trading impetus on the pair.
EUR/USD technical levels to watch