Many food delivery companies which are in a boom, now faces further competition as lockdown demand eases. As a result, the food delivery sector is undergoing a major consolidation right now, and more are expected. Recently Uber (NYSE: UBER) finally got its food delivery company, acquired its competitor Postmates after the company lost out in a bid for Grubhub last month. Meanwhile, Grubhub (NYSE: GRUB) was purchased by Amsterdam-based Just Eat Takeaway (AMS: TKWY) last month and this merger creates the largest food delivery business in the world outside China.
Euro/US Dollar hits its lowest level since May 2017, amid growing concerns over the health of the Eurozone economy, fears that the German economy could be heading for a recession. The global markets panicked from Coronavirus. As a result, the markets braced for global trade uncertainty about to hit the markets.
Factors that impact the EUR/USD pair
Several factors can impact the value of the euro and the U.S. dollar in relation to each other. The important one is the health of the European and American economies. The interest rate differential between the European Central Bank and the Federal Reserve (Fed) tends to influence the EUR/USD value. Political and economic uncertainty can also be a key driver of the EUR/USD price. For instance, Corona-Virus, Brexit, recession fears and the U.S.-China trade war – all can result in volatility.
From a fundamental outlook, the above bias indicates that the EURO might be heading lower in the coming days. The data showed this week the industrial production in the Eurozone contracted 2.1% m-o-m in December, the most in four years, versus -1.8% expected by analysts. A prolonged economic slowdown in China, given by the virus outbreak can depress domestic consumption in the country and cause it to reduce imports of goods from other countries including Germany. Last year, Germany’s key manufacturing sector already experienced a significant slowdown on account of the growing trade tensions between the US and China. This resulted in slowing economic growth in China and reduced the demand for German cars in the country as a result.
As we can see this is a horrific looking chart. EURUSD has broken the strong support level which can make EURUSD bearish towards 1.0750 zones. According to Gulf brokers, Prices are dropped to the oversold level. Near-term pullbacks from 1.0830/50 support remain corrective in nature. So in the short term, the pair may rebound towards 1.0900 and 1.0940 resistance levels. A breakdown through 1.0810/1.08 would negate that bias and suggest a test of the 1.0780-1.0750 support region.
Bitcoin went through its third 'halving' last month without much public attention. Bitcoin 'halving', occurring every four years, only took place twice in the past.
Spike in new coronavirus cases in the countries including the US, China, South Korea, Australia, New Zealand and Japan fuelled fears of a second wave of coronavirus infections. As per the recent report, worldwide, the total confirmed cases of Covid-19 have reached over 8,975,000, with over 468,000 deaths and 4,448,000 recoveries.
According to the European Association of Fruit and Vegetable Processors (PROFEL), extreme drought in 2018 caused vegetable processors the most serious problems in the last 40 years. Moreover, producers had been fighting with weather-related problems two years before. Drought and heat is still causing huge problems to farmers and the impacts are becoming more devastating. Therefore, the European Commission launched a public consultation on new EU strategy on adaptation to climate change, yet it has been postponed to 2021 due to the coronavirus pandemic. According to the latest report from the U.N. on climate change, the planet will reach a global temperature rise of 1.5 °C above pre-industrial levels as early as 2030.