The EUR/USD pair is struggling to recover, down -0.1% on day to 1.1206, but still holds its ground. US data, Lagarde’s speech, and further COVID-19 figures are set to trigger a risk-off mood favoring the dollar late in the day, according to FXStreet’s analyst Yohay Elam.
Key quotes
“Texas Governor Greg Abbott halted the reopening of the state amid an acceleration in COVID-19 hospitalizations. Cases continue rising in Florida, California, and most US states. Moreover, the Center for Disease Control said that the real number of infections is probably 23 million – ten times the current count. However, President Donald Trump stated the US will not impose shutdowns and that economy will roar forward.”
“Durable Goods Orders surged by 15.8% in May, beating expectations and showing a substantial rebound after April’s downfall, while Jobless claims were mixed, with initial claims remaining stubbornly high around 1.5 million and continuing applications dipping below 20 million. Friday’s figures are also of interest. Personal Income – which leaped by over 10% in April – has likely dropped in May, whereas Personal Spending probably took the other direction, surging in May after tumbling in April.”
“Christine Lagarde, President of the ECB, delivers a speech later in the day and may comment on the current economic situation and potential further stimulus. Lagarde will likely reiterate the Frankfurt-based institution’s commitment and will also call on politicians to play their part.”
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