EUR / USD benefits from weaker US dollar on stimulus hopes.
The single currency has gone from a low of 1.1923 to a high of 1.2076 and is currently trading 1.22% higher on the day.
This is a dollar-based move, as shown in the following charts:
Based on the previous day’s analysis, it was noted that the dollar may be on the verge of a new wave of selling below critical resistance as follows:
As it stands, the index is now well on its way to breaking out of level 91 in a new downtrend. The greenback fell to its lowest level in more than 2-1 / 2 years:
Investor appetite for risk has increased on the prospect of further fiscal stimulus from the United States, as mentioned here:
McConnell: will revise his targeted relief bill for a vote on the ground
News of a COVID bill sank the dollar as the resumption of new talks between U.S. Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi on Tuesday over a stimulus package maintains the risk flow.
A $ 908 billion relief bill has been proposed to fund measures through March 31, including $ 228 billion in additional paycheck protection funds for hotels, restaurants and other small businesses, Reuters reported.