EUR/USD drops to near 1.0620 as nations favor safety measures for arrivals from China


  • EUR/USD is facing pressure as fresh Covid measures taken by various nations for arrivals from China trigger volatility.
  • Absence of recovery signs from S&P500 futures after a two-day sell-off portraying risk-off mood.
  • The United States will require all travelers from China to show a negative Covid report, effective from next week.

The EUR/USD pair has sensed heat after a rebound move to near 1.0637 in the Asian session. The major currency pair has dropped marginally around 1.0620 as the risk-off impulse has regained traction after various nations announced the requirement for negative Covid-19 test reports of arrivals from China. This is expected to escalate supply chain disruptions as China is a leading trading partner with various nations in the world.

The US Dollar Index has turned sideways in a range of 104.26-104.40 after a correction in the early trade from a four-day high around 104.56. Meanwhile, S&P500 futures have not displayed any recovery move after a two-day sell-off, portraying a risk-aversion theme underpinned by the market participants. The return on the 10-year US Treasury bonds is facing pressure and has dropped to near 3.86%.

The pace of reopening of the Chinese economy adopted by the respective administration has spiked the number of infections, which has dismantled the idea of easing supply chain disruptions. According to CNN News, the United States will require all travelers from China to show a negative Covid test result before flying to the country, effective from January 5.

Meanwhile, Italy announced that it will commence testing all arrivals from China for Covid and urges European Union countries to follow suit, after the 50% positive test rate on China flights in Milan. Fresh concerns about the Covid situation in China are likely to keep the US Dollar Index on a positive trajectory.

On the Eurozone front, the trading bloc is concluding the CY2022 on a high inflation note, which will keep the European Central Bank (ECB) policymakers busy in finding ways to tame the Consumer Price Index (CPI). This week, ECB Governing Council member, as well as Dutch Governor, Klaas Knot warned for more policy tightening in the five policy meetings between now and July 2023 to contain firmer inflation. He further added that ‘The risk of us doing too little is still the bigger risk’.

EUR/USD

Overview
Today last price 1.0621
Today Daily Change 0.0013
Today Daily Change % 0.12
Today daily open 1.0608
 
Trends
Daily SMA20 1.0579
Daily SMA50 1.0313
Daily SMA100 1.0118
Daily SMA200 1.0328
 
Levels
Previous Daily High 1.0674
Previous Daily Low 1.0608
Previous Weekly High 1.0659
Previous Weekly Low 1.0573
Previous Monthly High 1.0497
Previous Monthly Low 0.973
Daily Fibonacci 38.2% 1.0633
Daily Fibonacci 61.8% 1.0649
Daily Pivot Point S1 1.0586
Daily Pivot Point S2 1.0564
Daily Pivot Point S3 1.0519
Daily Pivot Point R1 1.0652
Daily Pivot Point R2 1.0697
Daily Pivot Point R3 1.0719

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD flirts with 1.0700 post-US PMIs

EUR/USD flirts with 1.0700 post-US PMIs

EUR/USD maintains its daily gains and climbs to fresh highs near the 1.0700 mark against the backdrop of the resumption of the selling pressure in the Greenback, in the wake of weaker-than-expected flash US PMIs for the month of April.

EUR/USD News

GBP/USD surpasses 1.2400 on further Dollar selling

GBP/USD surpasses 1.2400 on further Dollar selling

Persistent bearish tone in the US Dollar lends support to the broad risk complex and bolsters the recovery in GBP/USD, which manages well to rise to fresh highs north of 1.2400 the figure post-US PMIs.

GBP/USD News

Gold trims losses on disappointing US PMIs

Gold trims losses on disappointing US PMIs

Gold (XAU/USD) reclaims part of the ground lost and pares initial losses on the back of further weakness in the Greenback following disheartening US PMIs prints.

Gold News

Here’s why Ondo price hit new ATH amid bearish market outlook Premium

Here’s why Ondo price hit new ATH amid bearish market outlook

Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.

Read more

Germany’s economic come back

Germany’s economic come back

Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.

Read more

Forex MAJORS

Cryptocurrencies

Signatures