The EUR/USD pair is slowly recovering from Thursday’s disappointing performance, as it hit 1.0652. The pair currently trades at 1.07 and the U.S. dollar rests with gains earned earlier this week this week.
Yesterday, the pair dropped to the lowest level since 2017 with the coronavirus pandemic taking most of the headlines, affecting people’s health. Countries are resorting to lockdowns seriously affecting their respective economies.
On the four-hour chart, the EUR/USD trades below the 50, 100, and 200 Simple Moving Averages.
On Thursday, the Federal Reserve announced dollar swaps with additional central banks and the European Central Bank confirmed €750 billion in new bond-buying.
Italy, Spain and France along with a number of other European countries are expected to increase their spending in order to reduce the impact of the virus on the economy.
As the British Chancellor Rishi Sunak prepares to present additional stimulus measures, the Cable rose over the 30 mark on the four-hour chart. UK Prime Minister Boris Johnson promised, "We will send coronavirus packing".
After the central bank supported the pound, the British pound showed positive signs. The pair hit a high of 1.1878 earlier in the day, going up from 1.1409.
It is expected that the UK’s economy will experience a bigger impact, due to the country being far behind other Europeans nations in their course of action.