EUR/USD: Euro is battiling coronavirus and US massive stimulus

EUR/USD has been trading around 1.08 amid the Senate's stimulus package and hopes from Italy. A potential dollar recovery alongside a retreat in stocks may weigh on the pair, according to FXStreet’s analyst Yohay Elam.

Key quotes

“The world's largest economy is deploying over $2 trillion to mitigate the economic fallout from coronavirus and the economic paralysis it entails.”

“The safe-haven US dollar remains under pressure, and stocks are cheering. If share price retreat on a ‘sell-the-fact’ response to the deal, the greenback may stage a comeback. The surge was also fueled by the Fed's open-ended Quantitative Easing program announced on Monday.” 

“Any additional positive sign from Italy and especially from the embattled region of Lombardy may boost the euro.”

“Markets are focusing on government action rather than economic figures. Wednesday's US Durable Goods Orders statistics for February predate the crisis and will likely be ignored.”