- EUR / USD is trading at 1.2215 against 1.2179 in early Asia.
- President Trump signs the coronavirus package, sending the dollar lower.
- EUR bulls need to establish a position above 1.22.
EUR / USD is the best offer and challenges the critical resistance zone on Monday, with the safe-haven dollar generating widespread losses in President Trump’s decision to sign the much-needed coronavirus relief package.
The currency pair is currently trading near 1.2215, representing a gain of almost 0.30% on the day. The rise was limited to the 1.2215-1.2221 zone in the previous two trading days.
Trump signed a $ 2.3 trillion package late Sunday, combining Covid-19 relief with government funding, restoring improved unemployment assistance that expired on Sunday and authorizing $ 600 in direct payments to Americans.
Trump objected to the package last week, demanding further relief checks and spending cuts. His sudden shift in opinion seems to have caught markets off guard and appears to be attracting offers for the dollar. The Brexit agreement reached last week also paved the way for a continued recovery of EUR / USD.
It remains to be seen whether the pair can establish a position above 1.22, having failed to do so in the previous two trading days. The data calendar is light on Monday, and erratic movements can be seen due to narrowing holiday negotiations.