05.05.2020 EUR/USD Daily Analysis

05.05.2020 EUR/USD Daily Analysis

EUR/USD is trading at $1.0888 as the USD traded lower in European trade this morning due to Matthew Pottinger`s statement to try and ease tensions between US and China. Deputy national security advisor Matthew Pottinger stated that the US is not considering punitive measures against China for mishandling the pandemic. The USD Index is down by 0.1%. The tensions between these two world powers raised fears of another trade war which caused investors to flee to the USD as a safe haven. Easing the tensions is causing investors to sell the USD safe haven. Today we should see a significant move with the EUR due to the German court ruling on the legality of the ECB`s public sector purchase program. The EUR fell after that ruling.