# What’s driving the Euro's sharp rally?

> The euro rallied to a more than two-month high near 1.11 against the dollar following news of a 750 billion euro EU recovery fund. Euro-area new virus cases were easing while US cases remained elevated, and US unemployment claims reached about 40 million since the crisis began. A downward revision to US Q1 GDP and weak durable goods orders also weighed on the dollar.

- Date: 2020-05-29 · published 2020-05-29T12:00:00.000Z
- Category: macro · region Europe · magnitude low
- Page: https://feedsoft.ai/events/53355-what-s-driving-the-euro-s-sharp-rally
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A weaker dollar and firmer euro typically support dollar-priced commodities and make US exports more competitive in euro terms. The divergence in recovery paths between the US and Europe is a key driver for near-term currency moves.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-02-09 | [What's behind the euro's comeback against the US dollar](https://feedsoft.ai/events/37542-what-s-behind-the-euro-s-comeback-against-the-us-dollar.md) | +0.3% | +1.1% |
| DXY | 2020-03-02 | [Why EURUSD is Rallying and What Could Cause it to Stop](https://feedsoft.ai/events/6184-why-eurusd-is-rallying-and-what-could-cause-it-to-stop.md) | -0.8% | +4.0% |
| DXY | 2026-01-28 | [Why the euro's rise to $1.20 is a big deal \| Reuters](https://feedsoft.ai/events/21263-why-the-euro-s-rise-to-1-20-is-a-big-deal-reuters.md) | +0.4% | +0.3% |
| DXY | 2019-06-17 | [FX Talking: The beginning of the end of the dollar’s rally \| reports \| ING THINK](https://feedsoft.ai/events/9810-fx-talking-the-beginning-of-the-end-of-the-dollar-s-rally-reports-ing-think.md) | -0.9% | -1.1% |
| DXY | 2018-09-24 | [Euro rises sharply as ECB's Draghi views tighter labor market](https://feedsoft.ai/events/63251-euro-rises-sharply-as-ecb-s-draghi-views-tighter-labor-market.md) | +0.3% | +1.5% |
| EURUSD | 2026-07-24 | [ECB holds rates steady: Why is the Euro rising?](https://feedsoft.ai/events/18562-ecb-holds-rates-steady-why-is-the-euro-rising.md) | +1.3% | +2.7% |
| EURUSD | 2023-02-09 | [What's behind the euro's comeback against the US dollar](https://feedsoft.ai/events/37542-what-s-behind-the-euro-s-comeback-against-the-us-dollar.md) | -0.5% | -1.5% |
| EURUSD | 2020-03-02 | [Why EURUSD is Rallying and What Could Cause it to Stop](https://feedsoft.ai/events/6184-why-eurusd-is-rallying-and-what-could-cause-it-to-stop.md) | +2.9% | +0.5% |

## Sources

- ebury.com: https://ebury.com/en-gb/resources/market-insights/whats-driving-the-euros-sharp-rally

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.