EUR/USD: Room to slide

The recent upbeat mood may be premature and EUR/USD has room to the downside, in the opinion of FXStreet’s analyst Yohay Elam.

Key quotes

“Fears about the US COVID-19 situation remain prevalent and could boost the USD. A document by the Center for Disease Control (CDC) has projected that US coronavirus deaths may double to around 134,000 in early June.”

“US Factory Orders plunged by over 10% in March and investors are eyeing Tuesday's ISM Non-Manufacturing Purchasing Managers' Index for April. A devastating headline figure – and employment component – could boost the greenback and weigh on stocks.”

“Spain and Italy have growing funding needs amid the crisis, and the ECB's expanded bond-buying schemes are helping them get by. However, the bank's programs were challenged in Germany's constitutional court which will rule on them later on Tuesday.”