EUR/USD: Economy divergence stifles the euro

EUR/USD has been attempting to stabilize around the lowest since 2017. Economic divergence, coronavirus headlines and the FOMC Meeting Minutes await traders, Yohay Elam from FXStreet reports. 

Key quotes

“The economic divergence between the struggling eurozone and the upbeat US economy remains the main downside driver for euro/dollar.”

“The coronavirus outbreak is also weighing on the common currency as Germany relies heavily on exports to China.” 

“Markets are awaiting the Federal Open Markets Committee (FOMC) Meeting Minutes for its January meeting. The Fed left rates unchanged and made only subtle changes to its accompanying statement.”

“Investors will look for any hints about changes in policy – related to the coronavirus or other factors.” 

“Bond markets are foreseeing a rate reduction later this year.”