Listen to the latest market mood for the EURUSD pair.
The Euro is weak after the German Constitutional Court gave the ECB three months to prove that its Quantitative easing programme was proportionate. This has weighed on the Euro as it raises some complex constitutional issues for both Germany and the EU. Germany is the EU’s largest member, so it is a significant issue.
The Dollar index is firmer as it held above the 100 level overnight on weakness from its major counterparts. With COVID19 issues still very much at the forefront of investors minds and US-China trade tensions re-emerging, we can expect further USD strength from pullbacks.
- Therefore, expect sellers on EURUSD from pullbacks.
- We expect this outlook to play out over the next market session.
- The main risk to this outlook remains to be any positive news for the EUR or positive COVID19 news which will result in USD selling.