Investors’ interest in the USD was rekindled. Overview for 22.09.2020

EURUSD fell significantly last night and still remains under pressure.

On Tuesday afternoon, the major currency pair remains under insignificant pressure after having a stressful evening on Monday. The current quote for the instrument is 1.1760.

Yesterday, many investors were looking for “safe haven” assets amid increasing risks relating to the coronavirus pandemic. The rise in the number of new COVID-19 cases holds market players in suspense because everyone is aware of the economic impact the second wave of the pandemic may have on the global economy.

In this light, concerns about the inaction of the US Congress relating to the approval of new financial incentives to support the American economy were put on the back burner. Yes, the “greenback” is still vulnerable but its “safe haven” asset status is more important right now. 

The ECB Governor Christine Lagarde, who spoke yesterday, paid attention to unbalance and different paces of the economic recovery in Europe. This, in its turn, requires a detailed and thorough assessment of all incoming information. According to Lagarde, the Euro Area can’t afford to miss any details ща the pandemic update. This is particularly important in view of unfolding events in Spain and Germany. 

Economic recovery prospects in the Euro Area directly depend on the coronavirus behavior and successful policy to control the pandemic. So far, according to the latest news, COVID-19 is clearly winning.