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Euro Rises Then Falls on Rising Coronavirus Cases and Equities Sell-Off

March 11, 2020 at 17:35 by Simon Mugo

Coins of eurocents on a €500 noteThe euro today rallied against the US dollar earlier in the session before falling later during the American session as the global equities sell-off deepened. The EUR/USD currency pair headed lower as European stock markets closed in the red and American markets opened lower later in the day.

The EUR/USD currency pair today rallied to a high of 1.1366 in the early European session before falling to a low of 1.1257 in the American session and was near these lows at the time of writing.

The currency pair edged higher at the start of today’s session, driven by positive investor sentiment before quickly heading lower in the early European session. The decline was attributed to the rising coronavirus cases in most European countries led by Italy, which is currently on a countrywide lockdown. Other countries such as Spain have reported more instances of the COVID-19 coronavirus even as Hungary declared a state of emergency and banned university classes.

German Chancellor Angela Merkel‘s comments indicating that a large proportion of Germany’s population could be infected with the virus did not help. The announcement of €25 billion funds to fight the coronavirus by the European Union also left investors unimpressed.

The release of the upbeat US consumer price index report for February by the Bureau of Labor Statistics had a muted impact on the pair as the US Dollar Index kept falling at the time.

The EUR/USD currency pair was trading at 1.1282 as at 17:34 GMT, having fallen from a high of 1.1366. The EUR/JPY currency pair was trading at 118.21, having dropped from a high of 119.23.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

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