EUR/USD has been recovering above the key 1.12 level as conditions are in place for the pair to extend its gains, yet the US coronavirus situation may limit any advance, FXStreet’s analyst Yohay Elam.
“The list of states suffering from rising infections, re-closing parts of the economy, or halting the reopening is growing – with the latest limitations coming from Colorado and Idaho. The EU is opening its borders to visitors but is shunning high-spending US tourists amid the disease. While the deterioration in coronavirus began in mid-June, figures from earlier in the month look upbeat, encouraging investors.”
“The first day of the new quarter features top-tier US indicators. First, ADP's private-sector labor statistics are projected to show a bounce of around three million jobs. While the firm significantly missed in May figures for June will likely rock markets. The second release is the ISM Manufacturing Purchasing Managers' Index, which carries expectations for a rebound to just under 50 – representing minor contraction. If it tops that threshold, it could further boost markets. Lastly, the Fed minutes may show if policymakers are upbeat about the recovery or worried about long-term damage to the economy.”
“US politics are gaining more traction as further opinion polls have shown challenger Joe Biden is leading against incumbent President Donald Trump by around ten points. Voters are displeased with the direction of the country and apart from replacing the man at the White House, they may vote in a Democratic majority in the Senate – a nightmare scenario for markets.”
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.