EUR/USD has started the new week trading with mild losses after continued indecisiveness about coronabonds. Newspaper headlines are pointing out that the number of coronavirus cases are dropping worldwide, instilling optimism.
Last week, the pair lost half a percent following Friday’s recovery and is being traded at a spot rate of 1.0873. U.S. authorities have hinted that they will soon launch another set of aid packages.
The EUR/USD finds support at the 1.0830, 1.0790 and 1.0750 levels, and resistance at 1.0925 and 1.0960.
The Pound-to-Dollar exchange rate is trading below the 1.2450. The British currency has been pushed down by ongoing criticism of Britain’s handling of the pandemic, Prime Minister Boris Johnson’s attentive approach to lifting lockdown measures as well as Brexit talks. Moreover, analysts are seeking a recovery from the greenback.
Markets are concerned about the possibility of the UK and the EU not reaching an agreement by the current deadline. A deal has not been reached between the two sides since the UK’s departure on January 31st.
Moreover, the Australian Dollar’s recent three-week long gain against other major currencies including the U.S. Dollar, Euro and Pound could be at risk of yielding. Against the GBP, the Aussie Dollar was trading at a market rate of 1.9617.
© 2012 – 2020 deVere Foreign Exchange, part of deVere Investment Ltd. All Rights Reserved.