EUR/USD: Risk-off sentiment favors the safe-haven greenback

The dollar remains the cleanest shirt in the dirty pile. Disappointing macro data and earnings have triggered a risk-off sentiment that favors the safe-haven greenback, according to FXStreet’s analyst Yohay Elam.

Key quotes

“US S&P 500 futures are up, allowing the dollar to fall. Can it last? Data may determine the outcome. The Philly Fed Manufacturing Index, housing starts and building permits are all of the interest, but will probably be overshadowed by labor market statistics.” 

“Weekly Unemployment Claims are projected to top five million in the week ending on April 10, after 6.606 million beforehand. Adding continuing claims, total job losses may surpass 20 million.”

“President Donald Trump declared that the peak is behind us and is set to publish guidelines to reopen the economy later on Thursday. [...] The second wave of infections may trigger reimposing restrictions, and worse for the economy, may heavily weigh on confidence.” 

“While European countries are seeing progress in fighting the illness, the processes are slow. Beating the disease is not a one-way street. A gradual reopening is on the cards, but it may be slow.”