EUR/USD set to continue under pressure as upbeat data fuels the dollar

EUR/USD has been under pressure amid a sour market mood. The reaction to jobless claims and the EU Summit may push the pair lower, Yohay Elam, an Analyst at FXStreet, reports.

Key quotes

“Concerns about rising cases in the old continent and the sluggish vaccine campaign are left, right, and center for EU leaders convening in the next few hours. If they point fingers at AstraZeneca and the UK – and take further steps such as halting shipments of vaccines – pressure on the euro would intensify. On the other hand, a more conciliatory approach – in line with the initial statement about a win-win for both sides – would be positive for the common currency. The summit may go into the night.”  

“The greenback is benefiting from upbeat figures. US Gross Domestic Product was upgraded from 4.1% to 4.3% annualized in the final read for the fourth quarter of 2020. More importantly, jobless claims dropped to 684,000 in the week ending March, exceeding expectations as well.”  

“Investors await more details about President Joe Biden’s massive infrastructure plans that will be officially presented last week. If Biden goes big, the dollar has more room to rise.”  

“The Relative Strength Index on the 4-hour chart is just above 30 – thus outside the oversold territory. That, alongside downside momentum, is fueling the bears.”