EUR/USD: Fears about the spread of coronavirus squeeze the euro


EUR/USD is under pressure amid coronavirus concerns as COVID-19 – cases, deaths, and reopening – remains the overwhelming topic on the last day of Q2, as it did throughout the quarter, FXStreet’s analyst Yohay Elam informs.

Key quotes

“Several US states are either reimposing restrictions or halting their reopening. Going to the beach will be forbidden for those living in Los Angeles and also Miami and Texas – where hospitals are coming under immense pressure – is also shutting down bars. New Jersey is delaying indoor dining – with New York set to follow. The news is boosting the safe-haven dollar.” 

“Jerome Powell, Chairman of the Fed, has released remarks from his upcoming testimony later on Tuesday – and the focus is on the virus. Powell reiterated that a return to pre-pandemic output levels is unlikely without beating the disease and that uncertainty is high. Treasury Secretary Steven Mnuchin will appear alongside the Fed Chair and will likely address demands for further fiscal stimulus.”

“Looking to the second half of the year, investors' nightmare scenario is a clean sweep by Democrats, with Senators Bernie Sanders and Elisabeth Warren regulating Wall Street. Such fears are also supporting the dollar.” 

“Spain's GDP was confirmed at a fall of 5.2% in the first quarter, serving as a reminder of Europe's troubles. Inflation figures will probably show a bounce in June after falling beforehand. Christine Lagarde, President of the European Central Bank, reiterated her pledge to fight deflation and do whatever is needed.” 

“Coronavirus cases remain low in Europe, including when accounting for population. However, small local outbreaks can turn into larger ones if they are not dealt with on time.” 

 

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

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures