EUR/USD: The downside is more appealing than the upside

The market mood has been positive, diminishing demand from the safe-haven dollar, yet this may change due to rising Sino-American tensions and concerns about the US economy, FXStreet’s analyst Yohay Elam reports.

Key quotes

“Sino-American tensions remain elevated on several fronts. The US continues accusing China of failing to keep coronavirus under control as Peter Navarro, a senior White House adviser, said that the world's largest economy deliberately sent infected people to sow the seeds of the disease in other countries.”

“Hu Xijin, the editor of the Global Times, advocated that his country should arm itself with additional nuclear weapons amid American aggression.” 

“In an interview to 60 Minutes, Jerome Powell said that it could take up to late 2021 for the economy to recover, and in any case – he does not foresee a full recovery without a vaccine. Powell warned that the unemployment rate could hit 25%.” 

“Europe's largest economies are gradually opening up. However, there are still doubts about the ECB's ability to help. The German constitutional court's ruling that the part of the ECB's bond-buying scheme is illegal may limit further action and governments' willingness to spend.”


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

GBP/USD tumbles from the highest since 2018 on the Brexit impasse

The GBP/USD roller coaster continues with a downfall below 1.35 after the pair hit a 31-month high of 1.3539 earlier. Brexit talks have yet to yield an agreement. Negotiations are set to continue through the weekend.


EUR/USD battles 1.2150 after disappointing NFP

EUR/USD is trading off the 32-month highs amid bumps in US stimulus and vaccine distribution. Markets await the all-important US Nonfarm Payrolls missed expectations with 245K jobs gained in November. 


XAU/USD fails to break $1850 and turns to the downside

Gold peaked after the beginning of the American session at $1848/oz reaching the highest level since November 23 and then turned to the downside. It bottomed at $1829 and is it about to end the week hovering around $1830.

Gold news

Dollar downfall explained and what's next for markets

The safe-haven US dollar is hitting multi-month and multi-year lows against its peers while stocks are on fire. What is behind the risk-on rally? Valeria Bednarik, Joseph Trevisani, and Yohay Elam discuss markets' moving parts as 2020 nears its end.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info