- Dollar moves through a rough patch
- COVID-19 blamed for the decline
- ECB expected to give out its report
Reports point to a euro (EUR/USD) that projects a bullish trend. On the other hand, the dollar seems to be struggling a great deal. This happens ahead of the much-anticipated ECB meeting expected to give way forward. However, arguments continue to be raised, with some parties outlining that there is nothing much to be expected from the meeting.
The COVID-19 pandemic has been majorly blamed for the struggles the dollar has had to go through. Reports show the currency to be holding about two-week lows, something quite uncommon about it. The coronavirus pandemic has robbed a large number of lives globally, with most of the governments brainstorming ways to combat it.
There have been some looming hopes for the introduction of a vaccine, but that is something that people will just have to wait and see. The decision by the US government to give out the stimulus checks was seen as a good one, but analysts say that choices have consequences. That is something whose effects also remain to be seen. However, the one thing that is easy to see is the struggles the dollar has been facing over time.
The performance of the euro was announced on Thursday, which was shortly before the pronouncement of the economic growth data linked to the preliminary eurozone. Matters aren’t looing quite good, according to analysts who have described the current situation as dire one.
Technical View : Long above 1.0936
Target :1.0956 next target levels 1.1015, 1.1061 and 1.1145
Last Price :1.0980
The economy in Europe has contracted in what many would term a deep way. It is something that has been explained using the mandated lockdowns. It is a recession that has left the government in uttermost shock, a case scenario considered as quite unprecedented.
There are reports ECB has been printing cash, and this is at a time when the COVID-19 pandemic is causing a debt surge in most of the European countries.
Things might look bad for the dollar, but it is quite encouraging that the currency has been reported to have gained on the yen.
The move by the U.S. Federal Reserve to cater for monetary easing has impacted the dollar. Analysts say that it is going to take a long time for the economy in the country to recover after it was battered by the deadly coronavirus.