Euro vs. US Dollar: Euro remains strong despite corona crisis

Euro Geldscheine Beispielfoto

The Euro also showed its strong side against the US Dollar in yesterday’s trading session. Early this morning, the bears only tried to push the price down once. However, this attack failed. And it failed quickly as too many buy orders were placed below the 1.0900 level. The 1.09 “big figure” was taken without difficulty and the Euro continued to gain strength. After that, the exchange rate moved almost exclusively in a upwards direction. In the meantime, the Euro gained more than 150 pips against the US Dollar and reached the 1.1056 mark in the evening. The rise in the european currency was partly caused by the euphoria on the securities markets.

Another reason was certainly the catastrophic employment data that was released yesterday afternoon from the U.S. The initial applications for unemployment benefits have increased tenfold in one week. While the week before 281,000 people had registered for unemployment assistance, yesterday the figure was 3,283,000. 1 million was forecast.

Dramatic situations

These figures clearly show how dramatically and at what speed the economic situation in the USA is deteriorating. The number of people infected with the coronavirus continues to rise exponentially. According to Johns Hopkins University, there are now almost 86,000 confirmed cases in the US. This is already more than in China. Almost 1,300 people have already died of Covid-19. And everyone is aware that the number of unreported cases is much higher. The situation seems to be worst in New York and New Orleans. But there are other hotspots, like California and Washington. Experts assume that the West Coast will not be fully hit within about two more weeks. More and more scientists confirm that the USA has already become the epicenter of the pandemic.

Although the situation in America is so bad and the economy is facing a recession, the Dow Jones was able to rise again yesterday. It closed with a big plus of 6.38%. Why? Because many investors firmly believe that there must and will be further financial injections in the near future. This shows once again, money rules the world. However, the US Dollar was not really able to profit from the buying mood of the stock exchange traders and had to let off steam not only against the Euro, but also against the other majorpairs such as GBP and JPY.

Will the Euro vs. the US Dollar see the 1.1100 mark at the end of the week?

As the situation currently looks, the Euro still has some upside potential against the US Dollar. Currently (Friday morning) the pair is trading at around 1.1050. The market is still quiet, but the price continues to move slightly higher. In the short-term, however, the indicators are already exhausted. Many traders will surely close out their positions before the weekend. Thus, there will also be some counter-reactions on the downside. It will be important today how the DAX starts trading. If the DAX shows a positive performance today, it may also give a boost to the Euro.

However, the air on the upper side is getting thinner and thinner, so if you want to trade the Euro vs. the USD today, you should know that there may soon be a correction on the downside. The 1.1100 level will still attract many today. An exciting trading day awaits us. If the 1.1100 mark should be conquered, an avalanche of stop orders and exaggerations can occur. The next resistance level is at around 1.1135. The Daily Pivot Point at the Euro vs. the US Dollar is at 1.0993 today.

Kursverlauf von Euro vs US-Dollar

The analyses shown here do not constitute investment advice and are therefore not a recommendation to buy or sell a security, a futures contract or any other financial instrument. Past performance is no guarantee of future results. The analyses provided are for information purposes only and cannot replace an individual consultation. Liability for direct or indirect consequences of these suggestions is therefore excluded.

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