Why EUR Was Strong?

6/05/2020 06:51:00 AM
Yesterday The outlook for the EUR was stronger after the ECB boosted PEPP payments by 600bln euros vs the 500bln expected. This boosted the EUR higher, and macroeconomic projections showed growth picking up in 2021 (+5.2%) more than expected in the March meeting, which offset the lower inflation projections.

However, after rising to an all-time high, the issue has begun to share its profits with a more sophisticated tone from ECB President Lagarde at the press conference, and also the bank's amendments are lower than its economic estimates.


Tips: EURUSD is the most traded currency pair in the world, making up 24% of daily forex trades according to the Bank of International Settlements (BIS). As such, movements in USD often influence EUR, with EUR weakening when USD strengthens and EUR strengthening when USD weakens.
Hawkish:  ECB boosts PEPP programme by EUR 600bln to EUR 1.35trln – bigger than the EUR 500bln boost expected;
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