EUR/USD rises on broad-based dollar weakness
|- EUR/USD gains as signs of peaking in the virus outbreak weigh over the US dollar.
- Above-forecast China March yuan-denominated trade data is supporting risk reset.
- EUR/USD appears on track to challenge the 50-day average resistance.
EUR/USD is gaining ground as measured optimism stemming from signs of peaking in the coronavirus outbreak is weighing over the safe-haven US dollar.
"Australia's virus curve has bent downwards more sharply than just about any country outside China," Ray Attrill, head of FX Strategy at NAB, told Nasdaq. Meanwhile, India's curve is beginning to flatten, as the growth rate of new cases has consistently declined after 6 April. Also, the talk of easing of restrictions on activity is gathering pace in the US and other parts of the world.
That, coupled with the above-forecast China trade data, particularly imports, which registered a growth of 2.4%, contradicting expectations for a 2.4% drop, and the uptick in the oil prices, is helping restore the risk sentiment.
The futures on the S&P 500 are reporting a 1.27% gain at press time and the US dollar is being offered across the board. The dollar index, which tracks the value of the greenback against majors, is reporting a 0.30% drop.
EUR/USD is trading near 1.0945, up 0.37% on the day, having found bids near 1.09 during the early Asian trading hours.
With the European data docket empty, the currency pair is likely to continue tracking the broader market sentiment during the day ahead. Having witnessed a solid bounce from 1.09, the spot appears on track to test and possibly break above the 50-day average at 1.0964. The bullish move will likely remain elusive if markets turn risk-averse.
Technical levels
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