EUR/USD is edging lower, just above the 1.1260 level, as coronavirus cases are rising in the US and other places while Europe's gradual opening up is encouraging but could be insufficient in weathering the storm, according to FXStreet’s analyst Yohay Elam.
“Germans are getting ready to flood Spanish islands Paris' famous cafes are reopening – but the growing sense of normality in Europe is insufficient against the safe-haven dollar. After holding up against the mighty greenback, the euro is beginning to crack down.”
“The main downward driver of markets – and dollar booster – comes from the US Sun Belt. COVID-19 infections and hospitalizations continue rising in Florida, Texas, Arizona, California, and over a dozen other states. While rising testing capacity can explain increased infections, admissions to medical facilities are undeniably bad news.”
“The gloomy mood is compounded by concerning news from China, which is suffering from an outbreak in Beijing. Authorities closed several markets and neighborhoods in the capital. Moreover, Chinese industrial output and retail sales both missed expectations – painting a picture of a slower recovery than had been anticipated.”
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