EUR Faces Much More Than Bad Data This Week

With Italy being the new epicenter of the Coronavirus the focus for the EUR will be on much more than just the important forward-looking economic data points this week.
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The EUR faces a couple of tough hurdles in this upcoming week.

Firstly, there is the flash PMI and German Ifo numbers which are expected to show considerable drops from prior numbers.

Secondly, there is the USD which has seen a massive surge of demand as investors, banks, companies and governments scramble to get their hands on Dollars in the wake of the global economic uncertainty.

The Fed did try to ease some of the demand on Friday when they opened up swap lines for 9 additional countries but given the current economic climate it is very reasonable to assume further support for the Dollar in the coming days and weeks.

Thirdly, the Coronavirus continues to wreak havoc throughout the EU, and any further escalation or de-escalation will be enough to impact the EUR in the short-term.

This week ahead video will help you prepare for this week’s upcoming event and provide insights into how you could possibly trade it as well.

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Highlights of the video:

00:44 – Baseline context for the currency 

02:25 – Baseline expectations for the upcoming risk event

05:07 – Possible sentiment shifts

07:28 – Possible currency pairs to consider

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