The US stock market again rose on Wednesday. American stocks gained impetus in light of the news that Gilead carried out successful tests of its medicine against the coronavirus called Remdisivir. Besides, this has been acknowledged by the US healthcare authorities.
On Wednesday, the US Federal Reserve held a policy meeting. The policy decision did not spring any surprises. The central bank confirmed that it has been employing all available resources to ensure liquidity in the crisis. The Fed intends to buy Treasuries and bonds of mortgage agencies as much as needed. Last but not least, the regulator is keeping close tabs on the pandemic developments.
Today on April 30, 2020 the ECB is due to unveil the policy decision at 11:45 GMT. The press conference of ECB President Christine Lagarde is taking place at 12:30 GMT. The regulator is widely expected to launch more stimulus measures, so EUR/USD is likely to gyrate at the time around these events.
The euro is still unable to test upwards the 100-period moving average that is displayed on the 4-hour chart. At the same time, the price does not retreat downward that is the blue line on the chart.
Today at 12:30 GMT the market is braced for a weekly update on initial unemployment claims. 3 million of Americans are expected to file for unemployment benefits last week. The US nonfarm payrolls for April will be published next week.
It would be a good idea to buy EUR/USD from 1.0850. When the price drops to 1.0808, stop loss will be activated and the pair will reverse downwards.
The coronavirus round-up on a global scale
In the continental Europe, all the worst-stricken countries have passed the epidemic peak. They are Italy, Spain, and France.
The most complicated situation is in the UK as the death toll remains high in the two last days. Over 800 people have died every day there.
In the US, the death toll is soaring. Over 2,400 fatalities are recorded per day. Importantly, most of the bad contribution comes from provinces. A week or two week ago, Donald Trump advocated in public for prompt easing lockdown measures. His stance was cheered by his party fellows. Perhaps such remarks made people less alert and triggered new waves of the infection. In New York, over 330 people died yesterday that is one seventh of the total death toll in the US. In other words, apparently the epidemic in the US has reached its peak. The disease is being contained slowly but surely.
In Russia, the authorities have extended the strict lockdown until May 11. The Kremlin might lift restrictive measures starting from May 12. Nevertheless, there is a hope that quarantine could be prolonged in Moscow and the region due to the gravity of the situation. The peak is Moscow is likely to fall on May 19-20. Until then, pressure on the medical staff is going to escalate. A surge in the number of the coronavirus cases could deal a blow to healthcare in Moscow and the region. Fatalities could rise sharply due to a heavy load on hospitals and doctors.
So, make sure you follow quarantine! Take care!
