EUR/USD: Concerns about Europe’s recovery to push the euro lower

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EUR/USD is trading below 1.19 after topping that line on Wednesday. Fed fuel keeps the euro afloat but vaccine issues may shoot the shared currency down, Yohay Elam, an Analyst at FXStreet, reports.

See: EUR/USD to plunge towards 1.15 in the second quarter as dollar’s strength lingers – Credit Suisse

The US Fed’s dovish message is weighing on the dollar while vaccine snags weigh on the euro

“The Federal Reserve is set to continue printing dollars for some time, pushing the currency lower. The FOMC Meeting Minutes also reflected the Fed’s commitment to supporting the economy, despite acknowledging its recent recovery and improving prospects.” 

“After several Fed members spoke on Wednesday, Chair Jerome Powell will take the stage on Thursday and he will likely reiterate the same message. That will likely keep the downward pressure on the greenback, but upbeat data could push it higher.”

“US jobless claims are set to drop below 700,000 in data for the week ending on April 2, after rising in the previous week. Other labor figures such as the Nonfarm Payrolls and the JOLTs job openings showed an upbeat employment market.”

“Europe heavily depends on AstraZeneca’s jab, where a line between rare blood clots and the jab was confirmed. Member states’ health ministers failed to agree on a uniform approach, one that would allow sending a clear message. Some countries have banned inoculations with AZ’s immunization for younger people.” 

“Some support awaits at 1.1860, the daily low. It is followed by 1.1820, which capped euro/dollar early in the week. Resistance is at 1.1920, which is where the 200 SMA hits the price.” 

 

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