EUR/USD to see a fresh fall amid coronavirus concerns in Europe and uncertainty about the US elections

FXStreet Team FXStreet

EUR/USD has been struggling to recover from last week's substantial falls. Coronavirus concerns, inflation figures and tensions ahead of the presidential debate could keep the pair down, FXStreet’s analyst Yohay Elam reports.

Key quotes

“One million coronavirus deaths – the world has reached that grim milestone and the focus on Europe is weighing on sentiment. That is only one of the reasons preventing EUR/USD from recovering and may bring it down to new lows.”

“Christine Lagarde, President of the European Central Bank, expressed concern about the virus and the impact on the economy. Will the Frankfurt-based institution provide more stimulus? Reportedly, that is fiercely debated and the ECB remains split between hawks and doves. The bank also has to deal with weak inflation, and new statistics published on Tuesday are adding to the case for more accommodation that may weigh on the euro.”

“COVID-19 infections remain elevated in the US as well, but the dollar's safe-haven status means it gains from such concerns.”

“The Federal Reserve seems reluctant to provide more stimulus. Most officials, including Chairman Jerome Powell, urged the government to provide more stimulus. Vice-Chair Richard Clarida and several other officials will speak on Tuesday and are likely to continue signaling that the ball lies in elected officials' court.”

“Some hope for a deal between Republicans and Democrats pushed stocks higher and the dollar lower – but that is beginning to fade. Lawmakers are gearing up for a battle around the nomination of a new Supreme Court Justice as the clock ticks down toward the elections – and the first presidential debate. The former Vice President is leading in the polls but is considered an underdog when it comes to debating. Will Trump close the gap with Biden? That would add uncertainty and potentially boost the safe-haven greenback as investors continue dreading the nightmare scenario of an inconclusive election and a constitutional crisis.”

Author

FXStreet Team

FXStreet

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.