EUR/USD is up to its highest level since 10 February now as the greenback slips further to start the European morning session. Despite the more risk-off mood in the market, the dollar is falling to session lows against the likes of the euro, aussie and kiwi currently.
The euro is continuing to stay bid with EUR/GBP also rising to its highest level since 10 February, as the pair trades higher by 0.4% to start the session.
For the dollar, it is a bit of a tricky situation. The move lower could partly be attributed to month-end flows propping up the euro, continued rotation out of US assets as stocks fall and yields tumble, or possible fears that the virus outbreak may hit the US next.
It could also be a combination of all of the above as we see the rates market continue its aggressive pricing on Fed rate cuts. As of now, a rate cut in April is almost fully priced in and that is compounding woes for the greenback today: