EUR/USD tops 1.09 amid coronavirus-related USD weakness, reports of German fiscal support

Yohay Elam FXStreet

EUR/USD has recaptured the 1.09 level, completing a climb of around 130 from the 2020 low of 1.0777.

The immediate trigger is a report in Die Zeir, a German outlet, saying that authorities are planning to allow local governments to break the debt brake – thus allowing increased spending. The continent's largest economy has been generally reluctant to open its purse strings.

The US dollar is on the back foot amid falling bond yields, a result of safe-haven flows related to the coronavirus outbreak.

The euro is advancing despite the recent fears stemming from the spread of the disease in Europe. Italy has reported a total of 372 cases, France has confirmed the first death related to the illness, and Greece has joined the list of countries where coronavirus has been seen.

EUR USD February 26 2020 technical chart

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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