The euro managed to rise during trading Thursday’s trading session, ahead of the European Central Bank meeting, in light of the decline in the levels of the US dollar with the increasing focus of the markets on the huge US stimulus plans, which reduced the demand for safe-haven currencies.
The euro rose against the dollar and reached its highest level today at 1.2146, after it opened trading today at the level of 1.2098, while it is currently trading at the level of 1.2136. The dollar index, on the other hand, fell more than 0.2% to hit its lowest level in a week at 90.16.
Stock markets have reached record highs on Wall Street and in Asia after the inauguration of Joe Biden, amid hopes that the 46th president of the United States will secure a package worth $1.9 trillion dollars to support the economy affected by the Coronavirus.
Expectations indicate that the dollar will continue to decline against major currencies with the approaching huge US stimulus package that will increase the supply of dollars in the markets, noting that the dollar lost 7% of its value in 2020 due to the easing US monetary policy to confront the Corona pandemic.
On the other hand, the ECB is expected to keep both interest rates and monetary easing on hold, but central bank may talk about further stimulus to combat the negative effect of the coronavirus on the European economy.