The EUR/USD has progressed as the safe-haven dollar as the U.S. CPI declined in April by 0.8%, matching expectations. The pair is being traded at 1.08652 and finds support at 1.0780 and resistance at 1.0555, along the 100 SMA.

New York Governor Andrew Cuomo stated that we are at the other side of the mountain", conveying claims that the city has started controlling the outbreak. However, he still advised residents to pay attention and follow the regulations. 

Traders now await announcements by Fed officials as well as Dr Anthony Fauci, who is to testify in front of a Senate committee. Fauci is expected to discuss the impact that the easing of the restrictions may have on the country.  

The GBP/EUR is being traded at €1.13 due to instability within the Eurozone. 

Following a dip at the start of the week, the British Pound is forecast to stabilise. It seems that the market sentiment heavily relies on the Pound as global stock markets declined as well. The Cable currently trades over the 1.2350 handle.

However, markets were concerned following the news of another outbreak in Wuhan and South Korea. 

Analyst with KBC Markets, Mathias Van der Jeugt said, “The prospect of the economy gradually returning to normal was overshadowed by new clusters of corona cases in South Korea and in the city of Wuhan – where the roots of the coronavirus lie. The reports trigger fears of a second wave and with it potentially new and even harsher quarantine measures.”