EUR/USD to see further gains as markets are upbeat after a turbulent week

The world's most popular currency pair is trading around 1.1850, gaining ground in response to Thursday's decision by the European Central Bank (ECB) and also as the safe-haven dollar loses ground on fresh optimism about a coronavirus vaccine. Yohay Elam, an analyst at FXStreet, sees EUR/USD ready to run as ECB speakers reiterate their comfort with the euro's value.

Key quotes

“‘We do not target the exchange rate’ – Several members of the European Central Bank have echoed Christine Lagarde, President of the ECB, over the weekend. While officials from Vice President Luis de Guindos to Chief Economist Philip Lane said the euro's value impacts inflation, their lax approach is seen by some as a ‘license to rise’." 

“AstraZeneca and the University of Oxford announced that their COVID-19 immunization project  – considered one of the world's most advanced – will resume in the UK. The Phase 3 trial was halted after one of the participants fell ill. Pfizer, a larger pharma firm, hopes to be able to supply doses of a vaccine by year-end.” 

“Investors seem to be shrugging off the rise in coronavirus infections across the old continent. Spain, France, and Austria have been standing out in news reports. While cases are increasing, deaths remain at low levels and health systems are coping so far.” 

“Falling COVID-19 infections and mortalities in the US are set to contribute to a ‘no-change’ decision by the Federal Reserve later this week. The world's most powerful central bank announced a long-term dovish policy shift – prioritizing full employment at the expense of higher inflation.”