We Could Be Seeing More EUR Gains Soon

The Euro is now supported by the European Union’s (EU) recent agreement for a recovery fund to help the bloc’s economy combat the downturn caused by the coronavirus disease (COVID-19) crisis.

Approving the recovery fund spurred demand for European assets and extended the Euro’s rally, and now, market analysts are suggesting we may see more gains by the European currency, especially as the USD is impacted by weak economic data.

In addition, the narrowing US Treasury bond-yield differentials are also causing trouble for USD, according to a recent article published by Bloomberg that suggested EUR/USD could soon reach 1.18.

Meanwhile, some are expecting the Euro to exceed the $1.2 mark by the end of 2020.

“Technical charts and commercial investor positioning also point to a continuation in the [Euro] rally.”