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Tension is mounting around EUR/USD ahead of a packed day while coronavirus updates remain cautiously optimistic, but lockdowns will likely be extended, FXStreet’s analyst Yohay Elam reports.

Key quotes

“Finance ministers from the eurozone countries meet again and will try to hammer out a joint response to the coronavirus crisis. Another inconclusive meeting would weigh on the common currency. Some kind of ‘euro-fudge’ is on the cards.”

“Coronavirus statistics are critical as countries are considering extending the lockdowns, with Italy contemplating keeping restrictions through late April. Shorter shutdown extensions may support the euro, while longer ones may undermine it.” 

“The meeting minutes from the ECB’s decisions may reveal additional steps that the institution is willing to take. Additional steps have room to underpin the euro as they would allow governments to do more.”

“Economists expect US weekly unemployment applications to ease to 5.250 million for the week ending on April 3 from 6.648 million beforehand. A worse outcome may weigh on the mood and boost the dollar.”

“Jerome Powell, Chairman of the Fed, delivers a speech and the topic is the economy. Powell’s views on the economy and suggestion of further steps may rock markets. An upbeat outlook may weigh on the dollar while expressing concerns could boost the world’s reserve currency.”