Five factors are all playing against the EUR/USD pair, in the opinion of NDDFX’s analyst Yohay Elam.
“COVID-19 cases and deaths continue rising in the old continent, the epicenter of the disease. France and Spain both announced record numbers of mortalities on Wednesday.”
“The eurozone remains split between the camp demanding to mutualize the debt and show solidarity, and the one opposing it, led by Germany. The potential political crisis is weighing on the common currency.”
“After skyrocketing to 3.283 million in the week ending on March 14, jobless claims Thursday’s report for the week that ended on March 21 could be even higher. Goldman Sachs foresees 5.25 million claims. Devastating figures could be positive for the safe-haven US dollar.”
“Republicans are not enthusiastic about President Donald Trump’s calls for infrastructure spending. If they change their mind, the dollar could fall but until then, the market mood could stay downbeat.”
“Bloomberg reported that US intelligence agencies suspect that Chinese confirmed cases and deaths are far higher. The news implies a worse trajectory and protracted economic suffering, weighing on sentiment and benefiting the US dollar.”