EUR/USD: Three reasons to favor the fall
|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.”
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