05.06.2020 EUR/USD Daily Analysis

05.06.2020 EUR/USD Daily Analysis

The Euro opened with a strong gain in early European trade Friday, as the European Central Bank’s decision to expand its stimulus measures has boosted the confidence in a global economic recovery. At the early hour, EUR/USD traded at 1.1357, up 0.2%, just off its strongest level in almost three months, and with its March 9 peak of $1.1495 now insight. On the week, the single currency has risen 2.4% and is set to clinch a third straight week of gains. The European Central Bank on Thursday offered yet another massive jolt of stimulus for the region, practically doubling its planned bond purchases to 1.35 trillion euro’s ($1.5 trillion). Sovereign bond yield spreads narrowed to their tightest since March in reaction. The unemployment rate for May is projected to rise to 19.8% from 14.7% in April, while nonfarm payrolls are estimated to have dropped another 8 million in the month.