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Euro surges on US massive stimulus package

Euro surges on US massive stimulus package

The euro rose during trading today, Wednesday, to continue its good performance during the last period against the US dollar, as the massive stimulus package of the United States economy contributed to reducing the increasing demand for liquidity on the U.S. dollar.

The EUR/USD pair hit a high of 1.0849 today, after opening the session at 1.0798, while currently trading at 1.0820, resuming its rebound for a fourth straight day.

The good performance of the euro continued to be supported by the agreement of the White House and Senate leaders on the proposed stimulus package to support the economy in its battle against Covid-19.

With reports saying that Democrats and Republicans were close to completing a $2 trillion stimulus package, which is considered the biggest economic stimulus package in modern American history.

In addition, the Fed's decision on the unlimited asset purchase program, as well as other measures to support the economy and credit markets managed to boost risk sentiment.

Meanwhile, there is lack of concerns about the availability of US dollar in markets, which is providing some help for the single currency.

As for economic data, the IFO institute for economic research in Germany revealed that the business climate index recorded 86.1 points during March, lower than the forecasts of a rise to 87.9 points and lower than the previous reading of 87.7.

Meanwhile, the dollar index, which measures the performance of six major currencies against the US dollar, slumped by 0.68 at 101.54.

Later in the day, durable goods orders may signal a 1.0 percent drop in February, following a 0.2 percent decline in January.

So far, the number of Covid-19 infections has risen to about 434,000 worldwide, and the virus has claimed nearly 19,000 lives.

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