EUR/USD: ECB propels the euro, NFP crucial for next move

The European Central Bank's additional monetary stimulus has sent EUR/USD to the highest levels since mid-March. US Nonfarm Payrolls are critical to the next move, Yohay Elam, an analyst at FXStreet, reports.

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Key quotes

“The ECB exceeded expectations by expanding its Pandemic Emergency Purchase Program (PEPP) by €600 billion to a total of €1.35 trillion.”

“Christine Lagarde, President of the ECB, said there was a unanimous agreement that action needed to be taken amid the coronavirus carnage. The bank staff's updated forecasts point to a loss of 8.7% in output this year. Fears of deflation were also part of the mix.”

“Investors are sensing that Europe is finally getting its act together, ditching past austerity and debt concerns in favor of boosting growth.” 

“Economists foresee a loss of eight million jobs in the worst largest economy in May, with the unemployment rate nearing 20%. Wage growth is projected to remain high as many low-earners have lost their jobs – 40% of those earning below $40,000, according to a recent comment by the Fed.”