EUR/USD: The economic pain is significant

EUR/USD has been falling amid worsening US-Sino relations and weak eurozone data, Yohay Elam, an analyst at FXStreet reports.

Key quotes

“Spain's Manufacturing Purchasing Managers' Index score 30.8 in April, worse than expected but above the lows of the 2008-2009 crisis. A similar picture is seen in Italy, where the Manufacturing PMI has come out at 31.1 points.”

“The encouraging developments have raised the pressure to reopen the economies while fears of second waves persist. So far, investors are reacting to the damage already done and the euro is under pressure.”

“Trump accused Beijing of failing to fulfill its obligations in the accord, signed only in January. His words boosted the safe-haven dollar.”