EUR/USD: The US support bill could push the dollar higher

US politicians' stance and the dire situation in Europe with the prospects of further economic strain may weigh heavily on the euro, according to Yohay Elam from FXStreet.

Key quotes

“The latest factor depressing investors is the disagreement in Washington. Democrats have refused to support Republicans' support bill to companies as it consists of a few strains attached.” 

“Every politician on Capitol Hill would want to be seen as outdoing their colleagues. The final sum could be huge. That would mean more funding needed, and could thus put selling pressure on bonds, pushing yields higher and carrying the dollar with it.”

“Coronavirus is taking a heavy toll on Europe. The worst is yet to come – both in the virus's human toll and its economic one.”

“Additional reports from the old continent will likely rock markets. Eurostat's Consumer Confidence survey for March is set to drop.”