EUR/USD: Easy-to-grasp mentality has now changed


The greenback used to either demolish all rivals when investors sought havens or succumb to pressure when markets recovered. This has now changed, with more nuanced trading, according to FXStreet’s analyst Yohay Elam.

Key quotes

“The massive fiscal injection is flooding markets with cash and relative stability. On this background, currencies backed by current account surpluses such as the Japanese yen and the euro are on the rise.” 

“France, Italy, Spain, and six other EU nations have called on leaders to go for issuing ‘corona-bonds’ while the ECB has revealed that it will abandon its self-imposed capital key limits from its new bond-buying scheme.”

“Italy may be showing the way forward and providing hope for containing the spread in Europe and boosting the euro.” 

“US jobless claims will likely get much worse with the consensus standing at around 1.5 million and estimates reaching as high as four million. A terrible number may weigh on stocks and perhaps trigger a rush to the safe-haven dollar.”

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD holds the lower ground below 1.2550 on downbeat UK GDP

GBP/USD stays pressured below1.2550 after flashing the biggest losses in two weeks the previous day. The UK GDP disappointed expectations by expanding 1.8% MoM in May. Focus shifts to the US CPI data. 

GBP/USD News

EUR/USD looks north but risk aversion could play spoilsport

EUR/USD looks north with the German economy showing signs of bottoming out and heightened expectations for an EU fiscal stimulus plan. Stronger gains, however, may remain elusive if the stock markets drop, tracking losses on Wall Street. 

EUR/USD News

Gold: Breaks $1,800 threshold, nearby support lines in focus

Gold prices extend Monday’s pullback from $1,813.54 to challenge Friday’s low. Monthly support line, a five-week-old rising trend line to question the bears. Bulls will seek entries beyond the weekly resistance line.

Gold News

US Consumer Price Index June Preview: Prices slowly return to normal

Consumer prices that collapsed in March and April have begun to return to normal as people return to work and shopping, and the country puts the complete lockdowns of the spring behind it.

Read more

WTI recovers from intraday low under $40.00 ahead of API inventories

WTI’s pullback from $39.30 fails to defy a two-day losing streak. China’s sustained increase in oil imports confronts chatter of easing output cuts. US inflation data, API stockpiles and American earnings are in the spotlight.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures