EUR/USD: More room to the downside

Even a dead cat bounces when it falls on the floor, that image is seen in EUR/USD. The reasons for falling outweigh those for rising, according to FXStreet’s analyst Yohay Elam.

Key quotes

“The European Commission's new economic projections foresee a deep recession in eurozone economies in 2020, with bounces next year – yet that fails to recover the lost output. Spain and Italy could see nearly double-digit falls in GDP according to Brussels.”

“The ECB dismissed Germany's constitutional court ruling that deemed the bank's bond-buying schemes is partly illegal. However, the euro has failed to recover from that decision.”

“President Trump continued criticizing China for failing to contain coronavirus at the source and also reiterated his threats to cancel the trade deal.

“Decisions by governors in California and Texas to reopen seem odd amid these states' figures and could lead to a potential second wave of infections. The president urges a return to normal and seems aware of the human cost.

“ADP's private-sector employment report showed that 20.236 jobs were lost in April. That adds to concerns about devastating Non-Farm Payrolls figures on Friday.”