EUR/USD: Non-farm Payrolls To Spark A Rally? Fundamentals, Technicals Improving, 1.1350 Eyed

  • EUR/USD has been edging up as optimism about a coronavirus vaccine outweighed cases. 
  • All eyes are on US Non-Farm Payrolls, which are set to continue recovering.
  • Thursday’s four-hour chart several bullish developments for the currency pair.

What cannot go down, must go up – EUR/USD has been rising above the uptrend support line and is moving up amid several positive developments.

Vaccine hopes: Pfizer (PFE) and BioNTech (BNTX) have reported promising results in their first trial of four COVID-19 vaccines. The two firms said subjects developed antibodies and will proceed with testing of the most successful candidates. Moreover, they are reading the mass production of vaccines, potentially accelerating the deployment of immunization, once it is approved.

Face masks reaching the top? President Donald Trump seemed to have endorsed wearing face masks, saying he would do it and he does it. The U-turn from the Commander-in-Chief – who previously mocked rival Joe Biden for wearing one – may help mitigate the disease. Goldman Sachs (GS) estimated that face covers could significantly substitute lockdowns and boost Gross Domestic Product by as much as 5%.

It comes as Republican governors and other party members – including Vice President Mike Pence – said masks are necessary. A picture is worth a thousand words and an image of Trump wearing a mask – like a “Lone Ranger” as he said – may further boost markets.

Record US COVID-19 cases: The need for protection comes amid yet another record day of US cases – over 50,000. Texas has suffered the highest death rate in six weeks as hospitals in Houston are already above normal capacity. Arizona, Florida, and California are additional hotspots.

Consumers have significantly slowed down their activity even before the new restrictions and places that seem to have the virus under control are either re-closing or delaying the reopening. That includes New York City, the financial capital of the world, where indoor dining remains prohibited.

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