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Felicia Tan
in
Forex
June 4 20:09

Euro remains close to monthly highs

EUR remains close to many monthly highs against the US dollar, expecting the European Central Bank to expand its bond purchasing program to support the economy affected by the coronavirus. This Wednesday, EUR reached its highest level since mid-March, showing seven consecutive growth sessions.
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ECB (European Central Bank) is expected to increase the size of its emergency stimulus program (PEPP) by 750 bln euros (US$669 bln) at its regular meeting, which will be held today at 11:45 GMT. Market participants also expect a press conference by ECB President Christine Lagarde at 12:30 GMT. The single European currency started to grow after Germany approved the launch of the EU Recovery Fund.
The strength of the euro and optimism about opening up economies around the world helped to reduce demand for the American currency and shift the dollar index to a 3 month low.
US data released on Wednesday showed that private sector jobs declined less than expected in May, suggesting that layoffs are declining as businesses open, although the overall recovery from the COVID-19 pandemic will be slow.
Optimism to lift restrictions on the epidemic and open economies continues to significantly influence the market, despite social unrest in the U.S. and growing diplomatic tensions with China.
AUD fell slightly after negative statistics were published. According to data published today by the Australian Bureau of Statistics, retail sales, taking into account seasonal fluctuations, fell in April by 17.7% to 24.791 billion Australian dollars.