Chris Turner, the Head of FX Strategy at ING, notes that two-year German vs. US sovereign yield spreads have narrowed inside 200 basis points for the first time since summer 2017. 

"Over recent years, rate spreads have had a decreasing relevance for EUR/USD (largely because they were so wide in the dollar’s favour). 

The global impact from Covid-19 will probably hit Europe’s open economy more than the US, yet we should still be a little careful about a EUR/USD upside correction. 

Certainly, it looks like investors are buying short term upside EUR/USD protection in the FX options market. Look out for a speech by European Central Bank President Christine Lagarde at 1430CET today and we could see EUR/USD drifting to the 1.0890/1.0900 area."