- EUR/USD faded an overnight spike above the 200-hour MA in Asia.
- Risk-off continues to bode well for the US dollar, a global reserve currency.
- Eurozone’s Industrial Production is forecasted to have contracted by 0.2% in February.
- Trump to announce new guidelines for reopening the economy on Thursday.
After facing rejection at the 100-hour average hurdle during Wednesday’s American trading hours, EUR/USD fell below the 200-hour average at 1.0896 in Asia and is now trading in the red near 1.0875.
Risk-off
The market remains focused on prospects of global economic recession due to coronavirus pandemic and continues to shun risk, as evidenced by the 0.50% decline in the futures tied to the S&P 500. Asian stocks, too, have come under pressure. For instance, Japan’s Nikkei index is flashing a 1.6% drop at press time.
Meanwhile, investors continue to treat the US dollar, a global reserve currency, as a haven asset. The pandemic is forcing investors to accumulate cash, preferably in the form of the greenback.
Eyes Eurozone data
The official data due at 09:00 GMT is expected to show that Eurozone’s industrial production contracted by 0.2% month-on-month in February. Markets are now worried about extended lockdowns leading to a deeper economic slowdown than previously forecasted and are unlikely to react to data for the month of February.
German Consumer Price Index for March, due at 06:00 GMT, could also turn out to be a non-event for the single currency.
The American dollar may run into offers during the US trading hours if President Trump surprises markets by announces guidelines for an early reopening of the economy at a news conference on Thursday. “We have passed the peak on new cases and it’s very exciting,” Trump told his daily news briefing on Wednesday.
The pair may also take cues from the weekly US employment data scheduled for release at 12:30 GMT.
Technical levels
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