- EUR / USD is trading at 1.2215 versus 1.2179 in early Asia.
- President Trump signs the coronavirus package and sends the dollar lower.
- The EUR bulls need to gain a foothold above 1.22.
EUR / USD is a better offer, challenging the critical resistance zone on Monday, with the safe-haven dollar causing losses across the board from President Trump’s decision to sign the much-needed coronavirus aid package.
The currency pair is currently trading near 1.2215 which equates to a gain of almost 0.30% in a day. The advantage was capped in the zone of 1.2215-1.2221 in the past two trading days.
Trump signed a $ 2.3 trillion package late Sunday, combining Covid-19 aid with government funding, restoring improved unemployment benefits that expired on Sunday, and authorizing $ 600 in direct payments to Americans.
Trump had opposed the package last week, demanding greater emergency checks and scaling back. His sudden change of heart appears to have taken the markets by surprise and seems to be drawing offers for the dollar. The Brexit deal reached last week has also paved the way for a continued rally in EUR / USD.
It remains to be seen if the pair can gain a foothold above 1.22 when it has failed to do so in the past two trading days. The data calendar is bright on Mondays and erratic movements can be observed due to holiday-thinning trading.