España ha reportado 655 nuevas muertes causadas por el Covid-19 el miércoles, menos que las 738 del martes. El número total ha alcanzado los 4.089.

El número de casos en la cuarta economía más grande de la eurozona ha llegado a 56.188. Alrededor de 32.000 personas están en el hospital, incluidas 3.679 en cuidados intensivos. El personal médico ha estado luchando para hacer frente a la afluencia de pacientes.

Las autoridades han advertido que lo peor está por venir. España permanecerá encerrada al menos hasta el 12 de abril. Las cifras de Italia saldrán más tarde en el día.

El EUR/USD cotiza cerca de 1.0950, ya que el dólar estadounidense se mantiene a la defensiva. Las solicitudes de desempleo de Estados Unidos centrarán la atención de los inversores más tarde en el día.

  • EUR/USD picks up pace and trades closer to 1.1000.
  • Fed’s Powell leaves the door open for further stimulus.
  • US Q4 GDP, weekly Claims, flash Trade Balance figures next on tap.

The upbeat mood in the single currency is now gathering extra traction and is lifting EUR/USD to the 1.0980 region.

EUR/USD in weekly highs near 1.1000

EUR/USD has picked up further pace in response to comments by Chief J.Powell at his interview earlier on Thursday.

Indeed, Fed’s Powell put the buck under further pressure after he left the door open for extra easing of the monetary conditions, stressing at the same time that there is still room for further action by the central bank and that it will step in aggressively as soon as credit is not flowing.

In addition, Powell hinted at the possibility that the US economy could already be in a recession and he suggested that the subsequent rebound of the economic activity hinges on the developments from the ongoing coronavirus pandemic.

Earlier in the session, the German Consumer Climate tracked by GfK deteriorated sharply for the month of April, falling to 2.7 from March’s 8.3 (revised from 9.8).

Still in the docket and later in the NA session, all the attention will be on the weekly release of Initial Claims, relegating advanced Trade Balance results and another estimate of the Q4 GDP to a secondary role.

What to look for around EUR

EUR/USD keeps the ‘recovery-mode’ well in place in the second half of the week, always following USD-dynamics, developments from the coronavirus and the response from overseas central banks and governments. On the latter, the Fed’s latest round of stimulus plus the US $2 trillion coronavirus aid package have been collaborating further with the rebound in the pair via a weaker dollar. On the macro view, better-than-forecasted PMIs in both Germany and the broader Euroland opened the door to some respite in the prevailing downtrend in fundamentals in the region, although the underlying stance still remains well on the negative side.

EUR/USD levels to watch

At the moment, the pair is gaining 0.77% at 1.0965 and a breakout of 1.0992 (monthly low Jan.29) would target 1.1008 (55-day SMA) en route to 1.1082 (200-day SMA). On the downside, the next support lines up at 1.0814 (78.6% Fibo of the 2017-2018 rally) followed by 1.0635 (2020 low Mar.23) and finally 1.0569 (monthly low Apr.10 2017).

The Department of Labor will issue its initial jobless claims for the week of March 20 on Thursday March 26 at 12:30 GMT. Joseph Trevisani, an analyst at FXStreet, shares his forecast.

Key quotes

“Initial claims are expected to rise to 1,000,000 from 281,000 the prior week. The range of the estimates is extraordinarily wide from 1 million to 4 million.” 

“It may be one of the steepest recessions since the Depression in terms of output and certainly in job losses but it could also be one of the shortest.”

“If the virus is contained in a month the economy could come roaring back. If it takes 12 weeks or longer and the economy requires a careful and measured reopening, the recession could linger through the end of the year.”