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The recent upbeat mood may be premature and EUR/USD has room to the downside, in the opinion of FXStreet’s analyst Yohay Elam.

Key quotes

“Fears about the US COVID-19 situation remain prevalent and could boost the USD. A document by the Center for Disease Control (CDC) has projected that US coronavirus deaths may double to around 134,000 in early June.”

“US Factory Orders plunged by over 10% in March and investors are eyeing Tuesday’s ISM Non-Manufacturing Purchasing Managers’ Index for April. A devastating headline figure – and employment component – could boost the greenback and weigh on stocks.”

“In the old continent, the latest coronavirus statistics have been encouraging, especially in Germany. The eurozone’s locomotive has reported fewer than 1,000 new infections in the past four days. Chancellor Angela Merkel is working with state leaders on plans to further loosen the lockdowns.”