# Why EURUSD is Rallying and What Could Cause it to Stop

> The euro rose against the dollar on 2 March 2020 despite accelerating coronavirus spread in Europe, marking a seventh consecutive weekly-type rally in EUR/USD. The move was attributed to the unwinding of carry trades, as investors sold lower-yielding euro positions.

- Date: 2020-03-02 · published 2020-03-02T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/6184-why-eurusd-is-rallying-and-what-could-cause-it-to-stop
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger euro and carry unwind reflect risk-off flows that weaken emerging-market currencies, which can raise the cost of imported feed ingredients for buyers in those markets.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2020-03-02 | 1 | +1.5% | 5.4 | Attributes the 2 March euro rally to carry-trade unwinding, in which euro funding positions are bought back, a flow-driven currency mechanism for the jump. |
| EURUSD | 2020-03-06 | 5 | +2.9% | 4.4 | Unwinding of euro-funded carry trades led to euro buying and a continued EUR/USD rally on 2 March despite virus spread in Europe. |
| DXY | 2020-03-02 | 1 | -0.7% | -4.4 | Euro rally on 2 March driven by carry trade unwinding contributed to the dollar's decline. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2020-05-29 | [What’s driving the Euro's sharp rally?](https://feedsoft.ai/events/53355-what-s-driving-the-euro-s-sharp-rally.md) | +2.3% | +1.4% |
| EURUSD | 2022-01-31 | [Why AUD And EUR Are Soaring Into RBA, ECB \| Investing.com](https://feedsoft.ai/events/43384-why-aud-and-eur-are-soaring-into-rba-ecb-investing-com.md) | +2.6% | +0.6% |
| 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 | 2017-08-30 | [The ECB can do little to stop the euro’s rise \| articles \| ING THINK](https://feedsoft.ai/events/69663-the-ecb-can-do-little-to-stop-the-euro-s-rise-articles-ing-think.md) | -0.7% | -2.3% |
| EURUSD | 2018-03-20 | [Euro Rally Could "Extend in Coming Days" - Analysts React to Reports of Shift in ECB Interest Rate Policy](https://feedsoft.ai/events/66202-euro-rally-could-extend-in-coming-days-analysts-react-to-reports-of-shift-in.md) | +0.9% | +0.4% |
| DXY | 2026-01-28 | [Why the Rand Hit R16.00 and What Could Keep it There](https://feedsoft.ai/events/21342-why-the-rand-hit-r16-00-and-what-could-keep-it-there.md) | +0.4% | +0.3% |
| DXY | 2020-05-29 | [What’s driving the Euro's sharp rally?](https://feedsoft.ai/events/53355-what-s-driving-the-euro-s-sharp-rally.md) | -1.4% | -0.6% |
| DXY | 2022-01-31 | [Why AUD And EUR Are Soaring Into RBA, ECB \| Investing.com](https://feedsoft.ai/events/43384-why-aud-and-eur-are-soaring-into-rba-ecb-investing-com.md) | -0.8% | -0.7% |

## Sources

- forex.com: https://www.forex.com/en/news-and-analysis/why-eurusd-is-rallying-and-what-could-cause-it-to-stop/

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