The Euro remains volatile. Overview for 25.06.2020

The major currency pair got under pressure amid new outbreaks of the COVID-19. 

On Thursday morning, EURUSD is slightly falling after having a pretty weak trading session the day before. The current quote for the instrument is 1.1284.

There haven’t been any significant numbers since the beginning of the week but it’s quite okay for the end of the month. Under such circumstances, investors often look for signals in the external background and usually find them. 

The same happened this time as well. Market players once again paid their attention to new cases of the coronavirus in the USA and China. It’s the third time, at least, and it’s quite alarming. Investors take these new cases as a signal for the second wave of the COVID-19 pandemic, which they are afraid of a lot, hence their negative attitude. 

Another source of pressure is the Reuters’ report that Pentagon has the list of 20 Chinese companies that may fall under the US sanctions. The list includes several mobile communications providers, manufacturing facilities, and Huawei. When it comes to the latter one, the USA has been longing to give it a hard time for long. 

Global escape from risks increases investors’ demand for “safe haven” assets, thus providing the USD with significant support.