EURUSD is currently holding onto gains greater than 1.08 after the US Senate finally approved a stimulus bill worth trillions of dollars to mitigate economic fallout from the coronavirus pandemic.
On the four-hour chart, EURUSD momentum turned positive. While EURUSD is still currently trading below the Simple Moving Averages, it looks like the picture has begun to improve. Resistance is awaiting a daily high of 1.0840, with some experts predicting that this level will rise to approximately 1.1050 in the next day or two.
Sealing The Deal
US Senate leader Mitch McConnell was pleased to announce that “at last we have a deal” after several long days of complex negotiations between the Democrats and Republicans.
The United States of America is home to the world’s largest economy, and the Senate will deploy over $2 trillion to kickstart the economy out of the paralysis it has endured in the past few weeks, in the wake of the COVID-19 outbreak.
The US dollar remains under pressure, although stocks appear to be on the up. An upside in equities was noticeable on Tuesday after the Dow Jones Industrial Average leapt by its most substantial level since the peak of the Great Depression back in 1933.
If share prices are anything to go by, it’s likely that the dollar will also bounce back in the coming days – particularly since the Federal Reserve announced a completely open-ended Quantitative Easing scheme at the beginning of the week.
Corona Market Crash: The End In Sight?
While increasing cities in the US (and indeed around the world) end up in lockdown, financial experts are already witnessing green shoots of growth in contrast with the measures put in place to control the spread of coronavirus.
While many European countries expect to experience near-lockdown style curbing of events and gatherings for at least three months, President Donald Trump is optimistic that restrictive measures in the US could end as soon as Easter (April 12th).
A failing economy could reduce the president’s chances of re-election, and the markets seem to be responding to government action as opposed to economic figures, and this is ultimately what is driving the current growth. The latest jobless applications figures did little to justify the President’s view.