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EUR/USD Falls Among Risk Aversion, Struggles to Rebound

June 25, 2020 by

EUR/USD fell today amid risk aversion on markets. The major reasons for the investors’ concerns were fears of the second wave of COVID-19 and trade tensions between the United States and the European Union. The currency pair attempted to bounce but is currently struggling to extend the rebound.

Durable goods orders climbed by 15.8% in May after dropping 18.1% in April. Market participants were expecting a smaller increase of 10.3%. (Event A on the chart.)

US GDP fell by 5.0% in Q1 2020 according to the third and final estimate. It was unchanged from the preliminary estimate and matched analysts’ expectations. GDP increased by 2.1% in Q4 2019. (Event A on the chart.)

Initial jobless claims fell to 1,480k last week, seasonally adjusted, from the previous week’s revised level of 1,540k (1,508k before the revision) but were above the consensus forecast of 1,320k. (Event A on the chart.)

Yesterday, a report on US crude oil inventories was released, showing a buildup of 1.4 million barrels last week, which was close to analysts’ projections and the previous week’s gain of a 1.2 million increase. The stockpiles were above the five-year average for this time of year. Total motor gasoline inventories dropped by 1.7 million barrels last week but remained above the five-year average. (Not shown on the chart.)

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