The positive decisions of the European Union for the economy of the region continue to be advantageous. In this way, the euro touches $ 1.20 in the Forex market, as a direct result of the good economic course of the eurozone.
Europe was one of the first regions where the coronavirus hit without excess. The negative effects soon began to be appreciated when they had to start with the economic blockades. Thus unleashing a recession and weakness in the eurozone economies.
However, Europe has managed to recover in record time and this is projected in the quotations of the European currency in the Forex market.
The euro is close to 1.20
The euro is close to breaking the $ 1.20 mark for the first time since 2018. This is due to the fact that Europe has been able to outline an economic recovery plan that worked and managed to guide the eurozone to a quick improvement in its economic figures.
In July, the European Union approved a historic package of 750,000 million euros in order to support the countries most affected by the pandemic.
Furthermore, it involved the bloc by selling bonds collectively, rather than as individual nations. Since its approval, the euro has risen approximately 3.7%
But this has not been the case with the dollar. Well, economic decisions by the government and the Federal Reserve of the United States have only made the dollar continue to weaken. And with the recent decisions, the dollar bled out.
Thus, the dollar index (DXY) fell to a multi-year low. As investors bet that the Federal Reserve’s policy framework meant that US rates would stay low longer.
For the Fed’s announcement last week that it would tolerate periods of higher inflation and focus more on employment has encouraged traders to sell dollars. The euro being the largest beneficiary, trading at annual highs at the time of writing.
Euro price to date
At the time of writing, the euro is trading peer to the dollar at $ 1.1910, drawing ever closer to the $ 1.20 mark.