EUR/USD: Italian correction to end soon


Italy is considering closing schools and that is weighing on the euro as Biden's Super Tuesday victory may be soon forgotten by markets. Yohay Elam, an analyst at FXStreet, sees reasons for the euro to change its downtrend.

Key quotes

“Italy – whose economy had been struggling before the crisis – is not alone in rising numbers of coronavirus cases. The death toll in the US continues rising and the world's largest economy has more to lose from measures of social distancing.” 

“The Federal Reserve slashed interest rates by a double-dose of 50 basis points on Tuesday and is expected to cut rates again later this month. The move comes in response to the virus.” 

“ADP's jobs report or February was only OK with an increase of 183,000 jobs – but on top of a significant downward revision to January's data, from 291,000 to 209,000.” 

“While markets prefer Biden over Sanders, political analysts see President Donald Trump's chances are higher against Sanders. As markets prefer the incumbent, the result is not necessarily a positive for investors.”

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD recovers beyond 1.2050 amid easing dollar’s demand

Easing Treasury yields and falling equities pushed the dollar lower heading into London fix. EUR/USD trades at daily highs around 1.2070 despite unimpressive EU data.

EUR/USD News

GBP/USD up over 100 pips after reaching a fresh two-week low

The pound trades around 1.3950 against the greenback, as demand for the latter receded. The focus is now on finance minister Sunak’s budget on Wednesday.

GBP/USD News

XAU/USD eyeing break below $1700 if this week’s US data beats

Spot gold prices are looking vulnerable in the $1720s after printing fresh multi-month lows during Tuesday Asia Pacific trade. Traders may look for a break below the $1700 level if strong US data adds to “over-heating” concerns.

Gold News

Ripple nears 30% spike while crypto bull run takes a breather

Bitcoin's uptrend is still intact despite the technical breakout stalling at $50,000. Ethereum faces an uphill task at the 38.2% Fibonacci level ahead of a potential spike to $1,700. Ripple is flirting with $0.44, while bulls look forward to a 30% rally to $0.575.

Read more

US Dollar Index: Next on the upside comes in 91.60

DXY pushes higher and clinches new 4-week peaks near 91.40. This area is coincident with the 100-day SMA (91.29).

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures