The EUR/USD currency pair has hit a four-week low at 1.0740, as the market mood remains cautious due to the ongoing COVID-19 pandemic and its impact on the global economy. The focus is now on the US durable goods orders data, which is expected to provide further insight into the state of the US economy.
The EUR/USD currency pair is one of the most widely traded currency pairs in the world, and it represents the exchange rate between the euro and the US dollar. The euro is the currency used by 19 of the 27 European Union countries, while the US dollar is the currency used in the United States.
The recent drop in the EUR/USD exchange rate can be attributed to a number of factors, including the ongoing COVID-19 pandemic, which has caused significant disruptions to global trade and commerce. The pandemic has led to a slowdown in economic activity, with many businesses forced to close or reduce their operations.
In addition to the pandemic, there are also concerns about the state of the US economy, which has been hit hard by the pandemic. The US government has implemented a number of measures to support the economy, including stimulus packages and low interest rates, but there are still concerns about the long-term impact of the pandemic on the economy.
The focus is now on the US durable goods orders data, which is expected to provide further insight into the state of the US economy. Durable goods are products that are designed to last for a long time, such as cars, appliances, and machinery. The durable goods orders data provides an indication of how much businesses are investing in these types of products, which can be a good indicator of overall economic activity.
If the durable goods orders data is better than expected, it could provide a boost to the US dollar and lead to further weakness in the EUR/USD exchange rate. However, if the data is worse than expected, it could lead to a rebound in the EUR/USD exchange rate.
Overall, the EUR/USD exchange rate is likely to remain volatile in the coming weeks and months, as the global economy continues to grapple with the impact of the COVID-19 pandemic. Investors will be closely watching economic data releases and government policy announcements for clues about the direction of the economy and the currency markets.
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- Source: https://zephyrnet.com/eur-usd-refreshes-four-week-low-at-1-0740-amid-cautious-market-mood-us-durables-in-focus/
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