Devasting PMIs, that sent EUR/USD to the lowest in a month, have been forgotten and the currency pair is up some 80 pips from the lows. Yohay Elam, an analyst at FXStreet, explains three reasons for the recovery.
Key quotes
“German backing: Angela Merkel has reportedly told EU leaders that the response to coronavirus must be ‘huge.’ The leaders’ summit was at risk of exposing disunity and weighing ont the euro, and the picture has changed.”
“BoJ bazooka: Intention to remove any limits to bond-buying, according to Nikkei, has added to the positive sentiment and weighs on the safe-haven dollar.”
“Fearless Fed: The Fed is now considering buying state and local debt. The Wall Street Journal says it will likely expand and deepen its programs. That also boosts stocks, weighing on the greenback.”
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