EUR/USD: Absence of unity depresses the shared currency

EUR/USD kicked off the post-Easter week with optimism about flatter coronavirus curves, but that gave way to losses as the economic damage became prominent. Additional health and financial figures are on the docket now, FXStreet’s analysts Yohay Elam reports.

Key quotes

“The absence of unity is felt on the political level and markets are taking note. The Eurogroup failed to agree on common bonds in a step that mostly hurt debt and disease-stricken Italy. That has weighed on the euro.”

“EU leaders will hold a videoconference on Thursday, trying to sort out a coordinated exit strategy and a recovery plan, where the clash over coronabonds will continue. The euro may suffer. If leaders commit to a package worth more than a trillion euros, perhaps that would help the common currency, but the chances are low.”

“US Weekly Unemployment Claims remain in the limelight, with growing weight for Continuing Claims. It will be interesting to see how many are already unable to return to work. Both numbers will likely be in the millions, pushing the four-week moving average higher.”