Dollar trades lower as German confidence, EU stimulus plan boosts risk appetite

The Dollar traded lower earlier on Thursday in European markets after new hope of an economic recovery in Europe bolstered sentiment.

The Dollar index fell by 0.1% to 954.808 at 3:10 AM ET (0710 GMT), gaining only slightly from the four-month low of 94.773.

Against the Japanese Yen, the Greenback traded mostly flat at ¥107.09, while the British Pound Sterling also remained unchanged against the Dollar at $1.2731.

The Euro rose against the Dollar, gaining 0.2% to $1.1587 after reaching a 21-month high of $1.1587 per Euro.

The gains in the Euro come after E.U. leaders agreed to roll out a massive stimulus plan to help soften the economic impact of the COVID-19 pandemic.

Germany’s GFK consumer confidence survey released on Thursday also helped strengthen the Euro, which showed that Europe’s largest economy was on track to a quick recovery.

The forward-looking consumer sentiment index stood at -0.3 in August, performing better than the forecasted -5 and July’s -9.6. It has gained almost 23 points since its low of – 23.1 points in May.