EUR/USD: ECB floods the world with currency and drowns the euro

EUR/USD is under fresh pressure amid the ECB's emergency action while dollar demand, coronavirus headlines, and US jobless claims are of interest, Yohay Elam from FXStreet briefs.

Key quotes

“The ECB launched the Pandemic Emergency Purchase Program (PEPP) in which it will buy both private and public sector securities. The euro benefited from the pledge to help, but flooding the world with currency means every euro's value is diluted.” 

“The devastating spread of the disease in the old continent and the ongoing lockdown weigh on the euro. The number of Covid-19 cases in Europe has surpassed that in China.” 

“The world's reserve currency is now the ultimate safe-haven. Investors are in a ‘sell-everything’ mode and money flows to the US dollar.” 

“Weekly jobless may show a rise in claims as shutdown may trigger the first layoffs.”