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Three dark clouds are gathering over the EUR/USD pair, pointing to the downside, FXStreet’s analyst Yohay Elam informs.

Key quotes

“After 16 hours of talks, eurozone finance ministers failed to reach an agreement on a common response to the coronavirus crisis. (…) Talks are set to resume on Thursday.”

“The Bank of France issued an early forecast for the first quarter, suggesting the economy contracted by 6%. It also suggested that every fortnight of lockdown costs the eurozone’s second-largest economy 1.5% in annual Gross Domestic Product.” 

“Five leading German institutes issued gloomy projections, a contraction of nearly 10% in the ‘locomotive’ of the eurozone. The news also weighs on the euro.”

“US stocks kicked off Tuesday’s trading on a high note but these gains vanished ahead of the close. The US dollar gained ground amid the safe-haven flows.”