EUR/USD: Biden's words and coronacrisis weighs on the euro

EUR/USD has been on the back foot as US coronavirus deaths rise and Biden bashes Wall Street. Today, speculation about the EU summit and updated COVID-19 statistics are eyed, FXStreet’s analyst Yohay Elam reports.

Key quotes

“‘Wall Street CEO did not build America’ – these words by Joe Biden, the presumptive Democratic nominee sent shivers down investors' spines, and supported the safe-haven US dollar. President Trump continues trailing Biden by a formidable margin of nine points and the challenger's statement that ‘the era of shareholder capitalism is set to end’ have not helped either.”

“US Daily cases remain close to the peak at around 60,000 – and may be held back due to a lack of testing capability in several states. Moreover, the number of deaths is also on the rise, nearing 1,000 daily. These figures may deter consumers and may trigger more restrictions – or at least a halt to reopening that Trump wants.”

“In the old continent, coronavirus seems under control, and the focus is on fiscal policy. Christine Lagarde, President of the ECB, cast doubt about the upcoming EU Summit and any agreement on the ambitious program. The EU Commission, backed by Germany and France, included €500 billion in mutually funded grants. That is currently unacceptable to the ‘Frugal Four’ – Austria, the Netherlands, Denmark, and Sweden.”