EUR/USD: Trump and Lagarde fighting to hit their currencies
No more flights between the US and Europe. After President Donald Trump failed to impress markets with a limited set to measures, it's the European Central Bank's turn to act and its powers are limited, Yohay Elam from FXStreet briefs.
“Trump announced a travel ban on flights in and out of Europe from Friday. He said that the US is fighting a ‘foreign virus’ and also offered several relief measures for businesses – but these fell short of market expectations.”
“The focus shifts to the ECB for help, which in turn, rightly asks governments to act. President Christine Lagarde warned EU leaders of a 2008-crisis if they fail to act.”
“The bank may further decrease rates, expand its bond-buying scheme and perhaps introduce new measures. For the euro, even if the ECB refuses to act, it may weigh on the euro.”
“Apart from announcing its new policy, the ECB publishes new forecasts for growth and inflation.”
“The US releases weekly jobless claims and producer prices for February but it is safe to say that are unlikely to shift attention from coronavirus headlines.”