Fiscal stimulus is the name of the game or the lack of such action in the wake of the coronavirus crisis as measures from the US has room to lift the dollar, in the opinion of Yohay Elam from FXStreet.
“German Chancellor Angela Merkel said that she would do ‘whatever is necessary’ and warned that 60-70% of Germans might get infected by the virus. Her speech came after the EU announced a €25 billion fund to mitigate the economic fallout – that failed to impress investors.”
“Christine Lagarde, President of the European Central Bank, reportedly told EU leaders that the continent is facing a 2008-style crisis if it fails to act.”
“The White House will reportedly hold an emergency meeting later on. If the administration announces new measures, the dollar and stocks may run higher. Otherwise, EUR/USD has more room to rise.”