The EUR/USD pair is being traded over the 1.08 support level, improving after a troublesome performance last week. The single currency has a challenging journey ahead of it which could push it back to 2020 lows, as Federal Reserve Chairman Jerome Powell is set to caution a lengthy recovery. Additionally, unemployment in the U.S. remains above 25%.

Traders await any updates on the China-U.S. trade tensions, which could further impact the currency.

The British Pound declined by over 2%, reaching 1.2104 against the American dollar in the past week. The Cable is being traded at around 1.21, with the British currency facing further losses in the weeks to come. The Pound continues to struggle amid uncertainty over Brexit and the British government’s handling of the pandemic.

Furthermore, the GBP/EUR is trading at 1.1182, after closing its worst week since the peak of coronavirus panic last Friday. Despite a recovery being predicted, it would only be temporary and analysts said that the exchange rate is facing another big blow later. 

The Pound-to-Australian Dollar is trading at 1.8802, with analysts favouring the AUD over the Sterling. GBP remains rooted in a multi-week sell-off against the Australian Dollar, resulting in a bearish stance over the exchange rate at the start of the week.