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EUR/USD Rises on US Coronavirus Relief Package Optimism

October 9, 2020 by

EUR/USD rallied today, and market analysts explained the rally by risk appetite on the Forex market. Traders felt more optimistic after US President Donald Trump returned to negotiations about a coronavirus relief package just two days after announcing a pause in the talks. The outlook for the victory of the Democratic candidate Joe Biden in the upcoming US presidential election was also weighing on the dollar. The second half of this week was light on economic reports in the United States, with just one release today and one yesterday.

Wholesale inventories rose by 0.4% in August, slightly less than analysts had predicted — 0.5%. The increase followed a decline of 0.3% in the previous month. (Event A on the chart.)

Yesterday, a report on initial jobless claims was released, showing a reading of 840k last week, down from 849k registered the week before (revised, 837k before the revision). The median forecasts had promised a bigger decrease to 820k. (Not shown on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

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