If the US struggles, the rest of the world suffers, and the dollar is demand, FXStreet’s analyst Yohay Elam reports.
Key quotes
“Leaders in the old continent remain at loggerheads over the economic relief for the crisis. Without an immediate solution to the fast-evolving problem, the euro has room to the downside. Markit’s final Service Purchasing Managers’ Indexes will likely confirm the weakness.”
“The first coronavirus-impacted Non-Farm Payrolls report lags jobless claims by around two weeks. While it is unlikely to show the devastating destruction of jobs, a loss of 100,000 positions is on the cards. The figures could be a win-win for the dollar.”
“The ISM Non-Manufacturing PMI is due out after the NFP, but may still move markets. Economists expect a sharp drop below 50.”
“The rapid spread of the Covid-19 in America may prove as another boost for the safe-haven greenback.”
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