The euro continues to hold steady at the highest level seen in several months against the US dollar early on Thursday over hopes that the ECB could announce expanding its bond purchase program to support Eurozone economies through the coronavirus crisis. At the time of writing, EUR/USD is trading at around 1.121.

During the previous session, EUR/USD soared for the seventh consecutive day to touch a high of 1.1258 – the strongest level for this pair seen since mid-March. The euro had weakened considerably at the height of the coronavirus pandemic back in March after most of the world went into lockdown, which strengthened the US dollar against other riskier currencies.

However, with the risk sentiment improving over hopes of economies reopening, EUR/USD has benefited and strengthened as traders move away from the safety of the greenback to resume trading riskier instruments. The dollar has weakened by around 1% so far this week on account of the return of the risk appetite in markets.

This pair has received an additional boost over rising expectations that the ECB could increase its Pandemic Emergency Purchase Programme (PEPP) from the current level of 750 billion euros later today. Traders are also hopeful that the ECB could expand the scope of its bond buying program or even remove earlier announced limits for each country, both of which could aid in economic recovery, especially among the worst affected countries in the Eurozone.