EUR/USD: Concerns about the US to boost the dollar and limit gains
EUR/USD is holding onto the high ground around 1.16 following upbeat eurozone PMIs but Sino-American tensions, US coronavirus figures and data may cap any gains, FXStreet’s analyst Yohay Elam informs.
Key quotes
“Markit's preliminary Purchasing Managers' Indexes for July all beat expectations, with the rebound in services more pronounced than in the manufacturing one. The data predates this week's EU agreement on a €750 billion recovery fund.”
“The safe-haven dollar may receive support from intensifying Sino-American tensions. China closed the US consulate in Chengdu, retaliation for America's move against Beijing's office in Houston. Secretary of State Mike Pompeo delivered a highly critical speech of China. While Pompeo pummeled Chinese President Xi Jinping, he stressed that the trade deal between the world's largest economies remains intact, providing some solace to investors.”