- EUR/USD remains under pressure below the 1.0900 mark.
- The ECB unveiled a €750B stimulus package on Wednesday.
- The dollar navigates the area of 3-year highs.
The downbeat mood around the shared currency remains well and sound so far on Thursday, with EUR/USD hovering around the 1.0870 region amidst unremitting USD-strength.
EUR/USD offered post-ECB plan
EUR/USD is down for the third consecutive session on Thursday, although some decent support appears to have emerged in the 1.0800 neighbourhood for the time being.
The solid momentum surrounding the greenback remains the exclusive driver of the pair’s price action, with the US Dollar Index (DXY) reaching new 3-year peaks in the vicinity of 101.80 on the back of so far unabated funding concerns sustaining the demand for the buck.
So far, the euro remains sceptical after the ECB announced an extra €750 billion stimulus package late on Wednesday. In fact, the central bank will now run an asset purchase programme (called the Pandemic Emergency Purchase Programme – PEPP) until at least the end of 2020 (or until the COVID-19 subsides). Under this programme, the ECB will purchase usual eligible assets under the existing QE as well as non-financial commercial paper and also Greek sovereign debt.
Nothing worth mentioning in the euro docket on Thursday, whereas across the pond the usual weekly report on the US labour market is due along with the Philly Fed index.
What to look for around EUR
EUR/USD remains under heavy downside pressure so far this week on the back of the strong comeback of the greenback, unabated COVID-19 concerns and fresh wave of easing monetary policy conditions by major central banks. On the latter, market participants are expected to keep assessing the recently announced stimulus package by the ECB for the time being. On the macro view, recent horrible prints in both Germany and the broader Euroland gave investors a “slap of reality” and hinted at the idea that a serious recovery in the region is still far away. This view is reinforced by the (un)expected impact of the coronavirus on the economy of the region.
EUR/USD levels to watch
At the moment, the pair is retreating 0.56% at 1.0848 and faces the next support at 1.0814 (78.6% Fibo of the 2017-2018 rally) seconded by 1.0777 (weekly/2020 low Feb.20) and finally 1.0710 (monthly low Jan.5 2016). On the other hand, a break above 1.0992 (monthly low Jan.29) would target 1.1093 (200-day SMA) en route to 1.1186 (61.8% Fibo of the 2017-2018 rally).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0700 after US data
EUR/USD struggles to build on Wednesday's gains and fluctuates in a tight channel near 1.0700 on Thursday. The data from the US showed that weekly Jobless Claims held steady at 208,000, helping the USD hold its ground and limiting the pair's upside.
GBP/USD fluctuates above 1.2500 following Wednesday's rebound
GBP/USD stays in a consolidation phase slightly above 1.2500 on Thursday after closing in the green on Wednesday. A mixed market mood caps the GBP/USD upside after Unit Labor Costs and weekly Jobless Claims data from the US.
Gold retreats to $2,300 despite falling US yields
Gold stays under bearish pressure and trades deep in negative territory at around $2,300 on Thursday. The benchmark 10-year US Treasury bond edges lower following the Fed's policy decisions but XAU/USD struggles to find a foothold.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.