EUR/USD: Souring mood to extend the demand for the greenback

EUR/USD has been on the back foot after Fed Chair Powell rejected negative rates. Coronavirus-related headlines, US jobless claims, and ECB tensions are eyed, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“Powell rejected the idea of setting negative interest rates and said all his colleagues agree on the topic and have not changed their minds. Powell pummeled stocks down pushed the dollar up.”

“Weekly jobless claims are due to show an increase of 2.5 million applications in the week ending May 8, extending the ongoing downtrend, yet still reflecting a devastating hit to the US economy.”

“Anthony Fauci reiterated that early reopening may cause unnecessary death and suffering and Trump said his comments are ‘unacceptable.’ Firing Facui would undermine confidence and serve as another risk factor.”

“Fears about the ECB's powers have not fully faded. The German constitutional court's ruling may still weigh on the euro.”