Coronavirus pandemic continues to gather pace

13 March, 2020

On Thursday, March 12, trading on the euro ended up down. After ECB President Christine Lagarde’s speech, the EURUSD pair fell to 1.1056. Following the meeting, the ECB decided to leave the refinancing rate unchanged at 0.0%. The deposit rate remained at the previous level of -0.5%. The regulator increased its plans for the purchase of government bonds by 120bn. EUR (by the end of the year - not monthly). The press release confirmed that the QE program will work for as long as necessary, and will end shortly before the next rate increase

By the close of the day, the price recovered to 1.1226. Growth was accompanied by a collapse in stock indices. The S&P index fell by almost 10%. During the American session, stock indices looked to gain a boost from the US Federal Reserve announcement, which allocated $1.5 trillion USD to increase liquidity in the financial markets. None of these measures did enough to calm investors.

Today’s news (GMT+3):

  • 15:30 USA: Import Price Index (YoY) (Feb).
  • 17:00 USA: Michigan Consumer Sentiment Index (Mar).
  • 21:00 USA: Baker Hughes US Oil Rig Count.

The EURUSD pair had been floating around within the zone located above the line D4. The collapse of stock indices helped the single currency to make its way out of this zone. At the time of writing, the euro is worth 1.1205.

The coronavirus pandemic continues to gather pace. A significant increase in the number of cases in developed countries serves only to provoke governments to take reactive measures to limit the movement of people and to close various public institutions. Mortality from the total number of infected increased to 3.6%. In Italy, the figure stands at 6.6%. Investors fear a serious recession in the global economy.

Asian stocks traded in the red zone today. Futures on the S&P500 and DJIA rose by 3.9%. It can be assumed that the peak of the “panic” has passed, and European indices will open with growth. On the back of Christine Lagarde’s speech, we can expect the pair to fall back to 1.1120, around the 90th degree.


Spanish armed forces stepped in to help deal with coronavirus16 Mar, 2020  

They are already patrolling the streets of Valencia, Seville, Zaragoza, Leon, Las Palmas and Santa Cruz de Tenerife...

Markets awaiting Lagarde's press conference23 Jan, 2020  

There is no forecast due to the ECB meeting and Christine Lagarde's press conference, scheduled for later in the day. Investors are not quite...

Euro hovering above bottom line of the channel22 Jan, 2020  

Bears have been strengthening their position since the Asian session. Today we have one scenario - a price recovery to the balance line...

Euro rebounds to 1.11 ahead of Fed meeting11 Dec, 2019  

On Tuesday the 10th of December, the euro was up at the close of trading. Strong ZEW data sparked a recovery to 1.1085 in European trading...

Bears testing the strength of trend line22 Oct, 2019  

The euro is trading at 1.1151. The Kiwi, Aussie, and pound are trading up against most of the majors, so today's forecast will be similar to yesterday...

Euro on the verge of collapse27 Sep, 2019  

Trading on the pair fluctuated throughout the day. The bears took advantage of the rise to 1.0967 to open some short positions. The euro is still...

Gold is having a great time13 Aug, 2019  

Gold is having a great time at the moment, but we've just reached a crucial resistance. This is the combination of a horizontal and dynamic resistance...

GBPJPY: from a strong buy to a proper sell 14 May, 2019  

Last week was pretty terrible for GBPJPY. It all started with the denial of a proper buy signal and ended with the creation of a long-term signal to go short...

Gold fights to deny triangle pattern30 Apr, 2019  

One instrument which is currently in a very interesting place is gold. The precious metal has suffered a lot recently, mostly due to two factors. The first one is...