EURUSD is starting to grow. Overview for 12.03.2020
After falling for a couple of days, the major currency pair is back to rising.
EURUSD is “in the black” on Thursday morning. The current quote for the instrument is 1.1295.
The World Health Organization on Wednesday declared the rapidly spreading coronavirus outbreak a pandemic. This information sparked more panic, made oil prices fall again, and once again caused a mass exodus of investors from risky assets. Starting March 13th, the USA is going to close its borders for European countries in order to prevent further virus transmission. Airlines all over the world are reducing the number of flights.
Given the circumstances, it is very interesting what decisions the European Central Bank will make during its March meeting. At the moment, its benchmark rate is zero, while the deposit rate is -0.4%. The QE program is active and there are options to extend it in order to support the Euro Area’s economy. The regulator may announce some selective stimulus, for example for Italy, the future financial outlook of which seems pretty gloomy.
So far, market players aren’t very nervous and don’t’ play against the Euro, at least for now.
In the evening, the USA is scheduled to report on the PPI, which may lose 0.1% m/m in February after adding 0.5% m/m in the previous month. The Core PPI, in its turn, may add 0.1% m/m after expanding by 0.5% m/m in January.