EUR/USD: Shared currency, unshared debt

EUR/USD has been under pressure as tension is mounting towards the EU Summit later this week, FXStreet’s analyst Yohay Elam reports.

Key quotes

“Coronabonds are dividing Europe and weighing on the common currency. Leaders will convene via video on Thursday, but countries are reiterating their positions early on Monday and already having an impact.”

“Internal clashes and uncertainty about exit strategies are also engulfing the US. While cases and deaths are on the decline, governors and the Federal government are suffering frictions.”

“The good news from Washington is that Republicans and Democrats are nearing an agreement on further aid to individuals and businesses, following the $2.2 trillion packages. If they announce another substantial stimulus, the market mood will improve, weighing on the dollar and allowing the dollar to recover.”