The euro is trading steady after some bullishness against the US dollar a day after the Fed announced a surprise 0.50% rate cut to offset any potential impact of the coronavirus outbreak on the US economy. At the time of writing, EUR/USD is trading at around 1.115.

The Fed’s sudden decision prompted investors to flee away from the US dollar into other currencies, with the euro turning into one of the biggest gainers in the forex market. Despite the 0.50% rate cut, sentiments of additional rate cuts continue to weigh on the dollar and are supporting bullishness in EUR/USD for now.

Markets are also expecting a 90% likelihood of the ECB cutting interest rates within a week, but with rates already in the negative territory, such a decision is expected to have a muted impact on European markets and the currency. Over the past eight days, EUR/USD has risen nearly 4% higher.