The Euro had a roller coaster ride this morning after dropping to 1.1055 overnight and finishing at 1.1100 in New York. The surprise Fed rate cut saw the shared currency surge to 1.11995 before easing to its current 1.1160. EUR/USD may have found a short-term base at 1.1055. The initial resistance level is at 1.1200 which should hold initially. A break of 1.1200 could see 1.1500.
Expect further high volatility in the EUR/USD pair. The Fed’s announcement of Quantitative Easing to weather the Coronavirus effect on the US economy will keep US rates at ultra-low levels. Which is supportive for EUR/USD.
Today, European finance ministers are due to meet following last week’s disappointing ECB meeting.
In Europe, Spain declared a state of emergency to deal with one of the worst Covid-19 outbreaks. Australian Business Insider reported that the number of confirmed cases has risen to more than 4,200 with at least 120 deaths.