EUR/USD: ECB propels the euro, NFP crucial for next move
|The European Central Bank's additional monetary stimulus has sent EUR/USD to the highest levels since mid-March. US Nonfarm Payrolls are critical to the next move, Yohay Elam, an analyst at FXStreet, reports.
Don’t miss: Ten major banks expectations for NFP May report
Key quotes
“The ECB exceeded expectations by expanding its Pandemic Emergency Purchase Program (PEPP) by €600 billion to a total of €1.35 trillion.”
“Christine Lagarde, President of the ECB, said there was a unanimous agreement that action needed to be taken amid the coronavirus carnage. The bank staff's updated forecasts point to a loss of 8.7% in output this year. Fears of deflation were also part of the mix.”
“Investors are sensing that Europe is finally getting its act together, ditching past austerity and debt concerns in favor of boosting growth.”
“Economists foresee a loss of eight million jobs in the worst largest economy in May, with the unemployment rate nearing 20%. Wage growth is projected to remain high as many low-earners have lost their jobs – 40% of those earning below $40,000, according to a recent comment by the Fed.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.