EUR/USD: Risk-off threatens to derail three-day winning streak

  • EUR/USD drops as the decline in the US stock futures puts haven bid under a dollar. 
  • Risk sentiment takes a hit on rising US-China tensions.
  • Trade war fears return as Trump renews tariffs threat to China.

EUR/USD is flashing red at press time and could end the day on a negative note, snapping a three-day winning run due to risk aversion and the broad-based demand for the US dollar

At press time, the pair is trading near 1.0940, representing a 0.33% drop on the day. The pair rose 0.48%, 0.75%, and 0.24% on Wednesday, Thursday, and Friday, respectively. 

The S&P 500 futures are down 0.56% at press time and WTI is reporting more than a 3% drop on the day. The dollar is again benefitting from the anti-risk mood in the financial markets. The dollar index, which tracks the value of the greenback, against majors, is trading at session highs above 99.30, representing a 0.67% rise on the day. 

US-China tensions rise

The markets turned risk-averse in Asia as the Trump administration stepped up the anti-China rhetoric over the weekend by stating the world's second-largest economy is responsible for the coronavirus pandemic. 

The US intelligence agency accused China of hiding the severity of the virus outbreak in order to stock up on medical supplies needed to respond to the virus. Meanwhile, President Trump said late Sunday that tariffs would be an ultimate punishment for China. 

Political experts think President Trump would continue bashing China ahead of the Presidential Elections due later this year in order to shift focus from the criticism he is facing at home for the handling of the virus crisis. 

Focus on German PMI

The German Markit Manufacturing PMI (Apr), due at 07:55 GMT, is forecasted to have remained unchanged at 34.4. A below-50 reading indicates contractions. A big beat on expectation may put a bid under the common currency. 

Technical levels

    1. R3 1.1106
    2. R2 1.1063
    3. R1 1.1022
  1. PP 1.0978
    1. S1 1.0938
    2. S2 1.0894
    3. S3 1.0853


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 falls below 1.1850 as US consumer sentiment beats

EUR/USD is trading under1.1850, off the previous levels as US consumer sentiment beat estimates with 78.9 points. The Fed refrained from adding more stimulus, supporting the dollar earlier in the week. Investors are eyeing fiscal stimulus talks.


GBP/USD falls as the EU reportedly objects Johnson's bill

GBP/USD is trading around 1.2950, off the highs. According to reports, the EU remains opposed to UK PM Johnson's controversial bill, which violates the Brexit accord. 


XAU/USD struggles to move back above 100-hour SMA

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.

Gold News

Ethereum hits Bitcoin's bid to lead the market

Bitcoin risks dominance after the strong rise of Ethereum. Technical indicators show some significant discrepancies keeping the stress on the board. Sentiment levels are improving and bordering on optimism.

Read more

After yesterday's JMMC meeting WTI settles near $40 per barrel

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. 

Oil News