- EUR / USD cut a candle for the day on Wednesday.
- EU finance ministers are expected to continue talks on fiscal stimulus on Thursday.
- ECB calls for € 1.5 trillion in tax measures
EUR / USD has no clear directional bias while EU finance ministers are struggling to agree on an economic rescue plan against coronaviruses.
Indoor day candle
The location suffered moderate losses on Wednesday, with Spain reporting the largest daily increase in coronavirus death in four days. Meanwhile, the European Central Bank (ECB) has said it has an obligation to keep rates low for a long time, while leading German economic forecasters see the economy shrinking by up to 10%. in the second quarter, as noted by Kathy of BK Asset Management. Privilege. This probably added to the downward pressure around the single currency.
However, as the pair fell, it still traded well in Wednesday’s trading range on Monday, forming a candlestick pattern inside the day on the daily chart, a sign of market indecision.
Focus on the EU meeting
Having failed in the night talks to agree on the recovery plan for the coronavirus, the finance ministers of the European Union countries should continue discussions on Thursday.
“This is a crucial question on which the future of the European Union is at stake,” Spanish Minister of Agriculture Luis Planas told Reuters on Wednesday.
The European Central Bank (ECB) has called for a fiscal stimulus amounting to 1.5 trillion euros. However, euro ministers have so far failed to relaunch the recovery, apparently due to a persistent deadlock between southern European states like Italy and fiscally conservative states like the Netherlands.
The single currency will likely be hit if the talks end on a sour note again. It should be noted that the ECB is already pursuing a negative interest rate policy and an extensive asset purchase program. As a result, markets increasingly expect governments to do their part by providing fiscal stimulus.
The ECB’s minutes, expected at 11:30 GMT, should reiterate the downside risks weighing on the economy and the will to do more if necessary. On the data side, Germany is expected to release trade figures for the month of February at 07:00 GMT.