The pair slightly contracted after reaching the highest level since 2018. What’s next?
What happened?
The euro has shown the great performance during 2020 so far. It seems it has changed the 2-year downward long-term trend. If we look at the weekly chart below, we will notice it.
The Euro gained on the current risk-on sentiment and the weak US dollar. Also, EU members agreed on the 750-billion-euros recovery fund to support economies in Europe. This fund includes 360 billion euros in loans and 390 billion euros in grants that don’t need to be repaid. Moreover, today the German consumer climate gave an additional impetus to the further EUR’s rally. It came out 0.8%, that was twice better than analysts expected. Some analysts claimed that the euro is overbought, but it keeps rallying no matter what.