According to analysts, the past week has become a period of test for the greenback. It survived the worst week since the 2008 financial crisis and experts believe that in the future, the greenback will have to fight to regain its rightful place under the financial sun.

Earlier, a positive outlook for the dollar was the fact that many investors ran to it as a defensive asset. However, in this current situation, this outlook is slowly being debunked. The greenback has experienced the worst week in the last 10 years, and experts are sure that the worst is yet to come.

This month, the greenback grew amid active purchases by investors seeking to maintain their capital in the most liquid currency in the world. The fall of the US dollar was promoted by the impressive measures taken by the American monetary authorities. Recall that the White House initiated a $2.2 trillion government spending package to curb the collapse in global markets provoked by the COVID-19 pandemic. Similar decisions were made by many European central banks. Thanks to their coordinated efforts to increase the supply of dollars, other currencies were able to stay afloat.

The most important indicator for the American economy as well as for the economy of other countries is the effect of the COVID-19. This was demonstrated by the report on the number of applications for unemployment benefits in the United States last Friday. The explosive growth of this indicator significantly weakened the greenback, almost instantly turning it from a triumphant currency into a defeated one.

However, experts expect that the macroeconomic report, which is expected this Friday, April 3, will correct the situation a little. It will feature Non-farm payrolls that reflect the state of the US economy during the rampant COVID-19 pandemic. Note that this indicator has always provoked high volatility in the EUR/USD pair, and now it can turn out to be off-scale.

According to preliminary forecasts, almost all components of the non-farm can go into a deep minus. It is expected that the number of people employed in the US non-agricultural sector will decrease by 80,000, while 120,000 in the private sector, and by 10 thousand in the production sector. Experts expect a sharp decrease in the share of the economically active population and hourly wages. The current situation may be in the hands of the USD bulls, which cannot be said about the bears. Experts said that the latter non-farms can be very disappointing.

Morning of March 30, volatility in the EUR / USD pair remains relatively high, but not unlimited. The classic tandem cruised near the marks of 1.1073–1.1075, trying to get out of the current cycle. In the future, the EUR / USD pair managed to overcome this barrier and reach the levels of 1.1079–1.1080.

The insignificant growth of the greenback on Monday won back only part of the losses that it suffered last week. According to experts, this week promises significant volatility for both the EUR / USD pair in general but very particularly for the dollar. They fear that it will significantly undermine the position of the greenback. However, analysts said that in the medium term, the state of the greenback may improve.