EUR/USD has been struggling amid Fed optimism, coronavirus hopes, and Trump’s comments. Devastating eurozone data is competing with the all-important Fed decision, FXStreet’s analyst Yohay Elam reports.
Key quotes
“By sitting on its hands, the ECB would be seeming to ignore the worsening economic situation in the eurozone, as the recent releases have shown. Spain, squeezed by 5.2% in the first quarter and France by 5.8%. The eurozone economy fell by 3.8%. All figures badly missed expectations and the second quarter will surely be worse.”
“The US economy is suffering, with first-quarter GDP falling by 4.8% annualized, worse than expected. However, the central bank in the US seems to have no limits. The Fed sent a clear message by committing to low rates and pledging to buy bonds in the amount needed.”
“US President Trump somewhat dampened the mood by heavily criticizing China, referring to the trade deal and coronavirus. Tensions between the world’s largest economies cooled market enthusiasm and kept the dollar bid.”
“US weekly jobless claims are set to show the fourth consecutive decline in new applications, yet the total number of job losses may surpass 30 million, a devastating development.”
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