On Sunday evening, the Fed sharply lowered the rate by 1%, clearly trying to bring down the wave of negativity from the coronavirus. It also allocated $ 700 billion for the purchase of 500 billion Treasury bonds, as well as $ 200 billion in bonds of mortgage agencies.
These actions are all due to the spread of the coronavirus.
As of the moment, the center of the pandemic has moved from China to Europe, as in China, 80% of the infected have already recovered. It seems that the country has already defeated the epidemic.
Meanwhile, the number of infected people outside of China is rapidly growing. Most of them are in Western Europe.
Center of pandemic: Italy - it already has about 22,000 patients, with a growth of more than 10% per day. There is also high mortality in the country, with up to 250 deaths per day.
Other dangerous situations (as of Sunday evening): Spain - 6,400 patients, Germany - 4,600 patients, and France - 4,500
US has already 2,700 patients. Some states have already declared a state of emergency, and the connection to Europe is now closed. In Europe, many countries are in quarantine, and all borders are now closed.
Meanwhile, in Russia, billionaire Oleg Deripaska called on the authorities to introduce a full quarantine. Two days later, Prime Minister Mikhail Mishustin called for it. Moscow mayor Sergey Sobyanin has been appointed as the chief anti-coronavirus officer.
JPMorgan said that several countries may default. If it is Italy, a big crisis is inevitable.
The main news at the moment is still the pandemic and the fight against it.
EUR/USD: Euro is still consolidating.
Buy from 1.1495.
Sell from 1.0775.
Sales are also possible from 1.1055.
