- The US dollar declines as eyes are focused on the ECB meeting
- Fight against COVID-19 ongoing
The greenback continues exhibiting a weak bullish trend. It has been reported to be trailing behind the euro, as was reported on Wednesday. That follows the move by the Federal Reserve to keep the rates unchanged. The body moved ahead to outline that it was considering supporting the economy with some ultra-loose monetary measures.
A close outlook
The Fed says that it saw the move to maintain the benchmark rate at the 0% to 0.25% range as quite ideal. The EUR/USD climbed by a margin of 0.54% to eventually stand at $1.0874. It says that its committee is determined to uphold the target range until matters reach that point where it can confidently say that the economy has survived the current challenges. Price stability matters a huge deal, and it is being put under close focus.
The changes occur at a time when the deadly COVID-19 pandemic is spearing out its wings globally. Many lives have been lost already, and governments are looking for easy to cushion citizens from the adverse effects if the pandemic. The focus is on the European Central Bank, although the Bank of America has continued to express pessimism. It asserts that whatever it decides on won’t have a significant material impact on the currency. The COVID-19 impact effects aren’t showing any signs of toning down. That is something that continues to trigger uncertainties about the future.
Time : 30-04-2020
Pivot : 1.0862
Technical View : Long above 1.0882
Target : 1.0901
Comments : Weak Bullish sentiment
Last Price : 1.0875
The dollar battered
Reports came out on Thursday that the dollar experienced losses. It was something that resulted from the move by the U.S. Federal Reserve to undertake its monetary easing plans. Analysts say the move by the body has ruined the expectation for a quick economic recovery as the coronavirus pandemic continues to frustrate the economy.
There are also reports of the COVID-19 impacts receding in some of the countries, something that is impacting the greenback in a bad way. A lot of people are turning away from resorting to the dollar as the safe-haven for the storage of their funds.
It was recently that reports came out about the possibility of the unveiling of a possible coronavirus drug. That has come with an impact considering that more people are considering the thought of investing in the riskier assets. The Australian dollar happens to be one of the risk-sensitive currencies, and it has been performing quite well as conditions continue improving.