The euro traded higher on Friday, getting close to the highest level in three months after European Central Bank) ECB) has announced that it will increase its pandemic-related emergency asset purchase program.
At press time, the EURUSD pair traded higher at 1.1346, while the highest level recorded during the session was at 1.1384, the highest since March 11, also heading for the third consecutive week of gains.
The euro has now corrected upwardly most of the downside fall that had occurred on March, but it would still need to rise further near 1.15 to complete a 100% Fibonacci Retracement.
Against the pound, the European currency was down at 0.8966, while the lowest level 0.8952.
ECB policymakers decided on Thursday to increase the pandemic emergency program to buy assets by an additional 600 billion euros ($672 billion). This comes in addition to the €750 billion government bond-buying program announced by the central bank in March.
Total asset purchases have now reached €1.35 trillion, amid attempts to boost the region's economy in the wake of the Corona pandemic.
Asset purchases under the emergency procurement program are scheduled to continue until at least the end of June 2021.
In addition, the Bank decided to continue the program of purchasing assets at a monthly pace of 20 billion euros along with purchases of an additional 120 billion euros temporarily until the end of this year.
According to the Monetary Policy Statement, the Board of Governors continues to stand ready to adjust all its instruments appropriately in order to ensure that inflation rates towards the target improve in a sustainable manner.
Meanwhile, there are hopes that the euro area would start to recover after reopening last month, which is boosting demand on the single currency.
On the other hand, the drop in haven demand and unrest in the United States over the death of George Floyd have put downside pressure on the green currency.
The dollar index, which trails the performance of the green currency against six major currencies, surged 0.13 percent to trade at 96.72, while the highest level recorded was at 96.82.
Later in the day, the
U.S. will release its jobs report for May, where downbeat figures may add more
downside pressure to the green currency.