Euro is not coming down without a fight

EUR/USD bulls are trying to hold the price above level 1.12
The market isn’t reacting to the bad news, which is good news. The number of COVID-19 cases per day in the US has increased to a record high. The U.S. senators seek to sanction Chinese officials for violating Hong Kong’s independence. The report on the US initial jobless claims has been worse than the forecast. All these factors should have dropped the S&P 500 below 3000, the EUR/USD should have been down to at least the support at 1.117. The international trade was down by 12.1% in April, which is the worst drop since records started. Reuters experts say the global economic state has deteriorated. To skeptics’ surprise, the US stocks have been up, and the euro-dollar has been held up above figure 12. The euro is not coming down without a fight!

The second wave of the pandemic and the escalation of trade wars are the factors that can trigger a deep correction in the U.S. stock market. On June 24, the S&P 500 was down when the number of coronavirus cases was close to the record high. However, when the number of new COVID-19 cases reached its peak, the U.S. stocks have been unexpectedly up. In fact, COVID-19 is just a decoration and the stock market moves depend on how deep the US GDP drops and how quickly it rebounds. That is why the market was more impressed by the speech of White House chief economic adviser Larry Kudlow, who said that the economy is not going to be closed again, the US economy could expand by 20% in the second half-year, and the US unemployment rate could fall below 10% by the end of 2020, than by the surge in the new coronavirus cases.

Dynamics of new COVID-19 cases in the USA

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