EUR/USD: Three reasons to favor the fall

FXStreet Team FXStreet

Coronavirus carnage has sent EUR/USD below 1.08, the lowest in two weeks. Yohay Elam, an analyst at FXStreet, gives three reasons for the fall and why it may continue.

Key quotes

“Horrifying economic figures: The German Composite PMI fell to 17.1 points against 31 expected. The services sector is leading the collapse with numbers in the teens. The figures are set to continue echoing and weighing on the euro.”

“False hopes for the EU Summit: Hopes for a robust ‘bazooka’ have been supporting the common currency but a potential ‘euro-fudge’, a diluted agreement may send it down.”

“US data may dampen the mood: Weekly Unemployment Claims may show over 4 million jobs lost in the week ending April 17. Shortly after, Markit's US PMIs will likely paint a grim picture. The safe-haven dollar has been gaining ground in response to downbeat figures, even if they are for the American economy.”

Author

FXStreet Team

FXStreet

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.