The United States Dollar registered an excellent start this Monday, as investors are looking forward to more dire news, following the entire fallout caused by the coronavirus outbreak.
The currency stood at 100.058 this morning, up 0.2%, while two of the most powerful pairs, GBP/USD and USD/JPY also registered important changes, falling 0.3%, to 1.2464, respectively going up 0.3%, to 107.86.
“We are coming into the eye of the storm,” admitted Chris Westom, head of research at brokerage firm Pepperstone, according to CNBC.
“And as the market starts to focus less on virus headlines, or at least will be less sensitive to better news, we will focus more on the lasting effects of the economy and solvency,” he added.
Should we expect worrying numbers?
This week is expected to bring the monthly employment figures in the United States, but also the eurozone survey indicators, while several governments from all over the world are considering making the first steps towards relaxing lockdown measures.
Besides the USD, the euro was also hard hit against the greenback this morning, after the news about the European Union’s plans to triple the amount of aid currently proposed to reduce the effects of the coronavirus crisis. Thus, the fact that the EUR/USD pair fell 0.2% to 1.0856 doesn’t come as a surprise for many.
The European aid, a sensitive topic
“The Eurogroup has now made proposals for aid worth more than 500 billion euros to finance healthcare and short-time work and to help small and medium-sized companies. That leaves at least one trillion euros. This is roughly the amount we need to be dealing with now,” revealed Paolo Geniloni, the EU’s Economics Commissioner.
However, considering that the entire angst wave that results from the most recent discussions to produce the 500 billion euros needed for aiding, finding an additional amount of one trillion euros could turn out to be a real challenge.