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EUR/USD Price Chart, Five-Minute Timeframe (April 30, 2020)
EUR/USD has been climbing gently since touching a recent low at 1.0727 on April 24. However, having climbed since then to a high just under 1.09, it would be no surprise if it now slipped back despite a general improvement in market sentiment on hopes for an antiviral drug to counter Covid-19 and a vaccine to protect against it.
The ECB has proved willing to inject money into the Eurozone economy in an attempt to prompt a recovery by absorbing surging sovereign debt. However, Eurozone governments have so far proved unable to agree meaningful joint action on fiscal policy to complement it despite ECB pressure on them to come up with a sizeable reconstruction plan.
This contrasts with the US, where President Donald Trump and Congress have already approved more than $4 trillion to support the medical response to Covid-19 and protect the economy from its impact – although Federal Reserve Chair Jerome Powell and others have called for even more.
