The first day of April has disappointed investors hoping for a EUR/USD bounce in the new quarter, as renewed coronavirus worries enhanced the allure of the dollar.
Risk sentiment soured significantly after U.S. President Trump warned Americans of a "painful" two weeks ahead nL1N2BP02Q.
Trump's comments fanned fears that the global economic impact of COVID-19 may be even more significant than expected, sending equity and commodity prices lower and global bond prices higher as investors made their preference for safe havens clear.
Despite currency basis swaps EURCBS3M=ICAP implying dollar funding pressures have eased, investors still see the dollar as a better bet.
The dollar remains bid against the major and emerging market currencies.
EUR/USD bears have taken charge, driving the pair below the March 31 low and threatening key support in around 1.0870/1.0900.
The daily cloud base, 10-DMA and March 26 low sit in that zone.
If risk sentiment remains sour and the dollar stays bid that support could break, exposing support near 1.0760/80 and 1.0720/30.
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