Coronavirus (COVID-19) develops an offensive as the number of patients outside China is still growing with an increase of 10% cases per day and maybe even higher. The fact that the pandemic spread to the main world financial and economic centers, mainly, Europe and USA became the most unpleasant for the world economy. On March 19, the number of patients in Italy, reached to 35,700 and over 9,000 patients were recorded in Spain, Germany and France.
In the United States, the number of patients is growing rapidly which already reached to 9,300 number of cases.
The ECB rescues the economy in Europe as a huge infusion of liquidity of 750 billion euros was announced (a week ago the ECB was much more economical - allocating then only 120 billion euros).
In the USA, as you remember, last Sunday the Fed lowered the rate by 1% and allocated $700 billion.
Right now, the US Congress is considering a $1 trillion economic assistance plan, where the plan includes business support, primarily airlines (and possibly Boeing, which is already asking for $60 billion) as well as direct assistance to households. Meanwhile, Trump's capacity to support the US economy at this kind of situation will determine his chances of re-election for the presidential election in November.
There have been reports of an increase in layoffs of workers in the United States. It is very obvious that businesses are experiencing great negative effects from this pandemic. Moreover, for measures to combat the epidemic, the quarantine regime puts tourism, hotels, restaurants, movie theaters and the service industry on the verge of bankruptcy. People are switching to a mode of saving and reducing consumption under the pressure of negativity. In Europe, demand for cars has fallen sharply.
The epidemic requires strict quarantine measures from governments, thereby, governments are forced to worsen the situation for business.
EURUSD:
The euro is trying to organize a new wave of decline.
You can keep sales from 1.1053.
