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EUR/USD is bouncing amid some market calm. Coronavirus headlines and further monetary and fiscal stimulus are eyed, Yohay Elam from FXStreet reports.

Key quotes

“Central banks have significantly contributed to alleviating pressures. The Fed has announced dollar swaps with additional central banks. The ECB’s announcement of €750 billion in new bond-buying is still echoing in markets.”

“In the US, lawmakers continue working on a plan worth over a trillion dollars but differences between Democrats and Republicans are delaying its advance.”

“Substantial spending is set to provide support to markets, weighing on the dollar and allowing EUR/USD to recover. Feet-dragging will likely send euro/dollar falling again.”

“US jobless claims leaped from 211,000 to 281,000 in the week ending on March 13, in the first sign of rising unemployment in the world’s largest economy.” 

“After shares recovered on Thursday, there is room to the downside on Friday – and EUR/USD may suffer.”