EUR/USD: Italy’s correction to end soon
Italy is considering closing schools and that is weighing on the euro as Biden's Super Tuesday victory may be soon forgotten by markets. Yohay Elam, an analyst at FXStreet, sees reasons for the euro to change its downtrend.
“Italy – whose economy had been struggling before the crisis – is not alone in rising numbers of coronavirus cases. The death toll in the US continues rising and the world's largest economy has more to lose from measures of social distancing.”
“The Federal Reserve slashed interest rates by a double-dose of 50 basis points on Tuesday and is expected to cut rates again later this month. The move comes in response to the virus.”
“ADP's jobs report or February was only OK with an increase of 183,000 jobs – but on top of a significant downward revision to January's data, from 291,000 to 209,000.”
“While markets prefer Biden over Sanders, political analysts see President Donald Trump's chances are higher against Sanders. As markets prefer the incumbent, the result is not necessarily a positive for investors.”