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  • Euro falls for the third day in a row versus US dollar, posts lowest close since April 2017. 
  • Fed, ECB and BoE announced more easing measures.
  • Wall Street indexes up between 0.75% to 4%, DXY by 1.45%. 

The combination of the stronger US dollar against majors and the easing measures from the European Central Bank sent EUR/USD to the lowest levels since 2017. The pair bottomed during the American session at 1.0655; it then rebounded but is was unable to recover 1.07. The pair holds near the bottom consolidating sharp losses and clearly below February lows. 

Higher equity prices on Thursday did not curb US dollar’s strength versus main European currencies, neither did the decline in US yields. The greenback continues to be the most demanded currency on panic market mode. On Thursday, Wall Street did not reach new lows and crude oil rebounded modestly. 

As the coronavirus impact on the economy becomes more evident, central banks and governments announce more easing measures. The European Central Bank (ECB) launched a new buying program for $800 while the Fed created a lending facility for money market mutual funds. Also the Fed announced dollar swap lines with nine more central banks. ECB Chief Lagarde said she expects a “considerable decline” of activity in the Eurozone. So far, the new measures from the ECB help reduce bond spreads across Europe. 

Data released on Thursday in the US showed initial jobless claims climbed to 281.000, the highest level since September 2017 and the Philly Fed’s business outlook posted its largest decline from 36.7 to -12.7 in March.

Technical levels