EUR/USD: Euro’s rallying

The spread of the disease to NYC has had a profound impact on markets and the dollar’s weakness has already sent EUR/USD to 1.1278, which is 501 pips below the trough in mid-February. Further virus news and US Non-Farm Payrolls are all eyed, Yohay Elam from FXStreet reports. 

Key quotes

“Thousands of people are reportedly quarantined in the world’s financial capital. Moreover, the US is lagging behind in testing for the disease, and many fear that the number of cases in the world’s largest economy will leap.”

“President Donald Trump has finally acknowledged that the US will suffer economically from the disease after expressing doubts earlier. 

“The disease also continues spreading in Europe with Italy confirming 148 deaths and Germany’s infection rate surpassing 500. Italy’s decision to close schools and universities through March 15 weighed on the euro earlier this week but is now forgotten as the focus shifts to the US.” 

“The US Non-Farm Payrolls report – usually a massive market-mover – is likely to have only a temporary impact as coronavirus news hogs the headlines. Economists expect an increase of 175,000 jobs in February.”