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EUR/USD has been on the back foot amid an increase in US coronavirus cases. Yohay Elam, an analyst at FXStreet, continues looking at coronavirus statistics besides a big bulk of American economic figures.

Key quotes

“Houston, we have a problem – Intensive Care Units (ICUs) may run out of capacity in America’s fourth-largest city on Thursday as COVID-19 rages through Texas. The lone-star state is not alone, as the disease is rising in some 26 states, with the worst-hit ones being in the south. President Trump and his administration say that a higher testing capacity is behind the surge in cases but the worrying reports are weighing on the market mood and pushing the safe-haven dollar higher.”

“Further gloom comes from the IMF, which downgraded its forecasts – and now sees a decline of 4.9% in global growth this year. Moreover, it also laid out a scenario in which there is 0% growth in 2021 – an L-shaped non-recovery.” 

“Investors will likely shrug off any revision of first-quarter GDP – projected to remain at a contraction of 5%. The most significant release is Durable Goods Orders for May – forecast to show a bounce after the downfall in April.”

“Apart from US data and coronavirus statistics from southern states, markets may pay more heed to the presidential elections. Democrat Joe Biden is ahead against President Donald Trump by some 9-10%. A clean sweep by the opposition party would weigh on stocks amid regulation fears.”