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ECB Lane: Q2 is trough of coronavirus crisis in all scenarios
<p>ECB Chief Economist Philip Lane said in a speech that in all scenarios developed, Q2 represents the “trough” of the coronavirus crisis. A “significant rebound is expected over the summer” in line with removal of the most severe lockdown measures. But the scenarios differ in terms of the “du
German Maas very confident on EU support for Franco-German recovery plan
<p>German Foreign Minister Heiko Maas said he’s “very confident” that the Franco-German Recovery Fund plan will get broad support from EU members. He added, “it is a first step to a European solution, we will have to discuss the details within Europe but we have agreed that we must find a solution quickly.” Euro
German ZEW rose to 46.0, optimism is growing, but catching-up will take a long time
<p>German ZEW Economic Sentiment rose to 46.0 in May, up from 25.2, beat expectation of 27.4. That’s the second increase in a row. However, Current Situation Index dropped slightly by -2.0 to -93.5, below expectation of -87.8. Eurozone ZEW Economic Sentiment rose to 51.0, up from 28.2, beat expectation of 30.0. Current Situation Index a
Euro Surges of Recovery Fund Hope, Yen Tumbles
<p>Yen, Dollar and Swiss Franc remain generally weak today eventual risk rally starts to take a breather in European session. On the other hand, currency market have some what shifted from commodity currencies to Euro and Sterling. Euro is lifted by optimism on the Franco-German recovery fund plan. Sterling is boosted by UK’s new, post-
Dollar Index Remains in Red and Could Drop to 200DMA on Close Below Daily Cloud
<p>The dollar index fell further on Tuesday, extending Monday’s 0.8% fall (the biggest one-day drop since 27 Mar). The greenback weakened across the board on fresh risk demand, sparked by hopes that vaccine for coronavirus might be developed soon, following encouraging signs on tests. Fresh bearish extension penetrated daily Ichimoku cl
UK PMIs Unlikely to Rescue Pound from Mounting Risks
<p>In Britain, the preliminary PMIs for May will hit the markets at 08:30 GMT Thursday, ahead of retail sales for April at 06:00 GMT on Friday. The PMIs are expected to rise, but to remain deep within contractionary waters, while retail sales are primed for a record collapse. As for the pound, it is being […]
U.S. Housing Starts Slide Further in April
<p>After falling by close to 19% in March, U.S. housing starts fell another 30.2% in April to 891k units (annualized). The April tally came in well below the market consensus forecast, which called for a 927k-print, and marked he weakest showing since early-2015. Starts pulled back in both the single-family and multi-family segments, with the
USD/JPY Outlook: Rally Above Daily Cloud Approaches Key Fibo Barrier/200DMA
<p>The pair jumped above thickening daily cloud on Tuesday and approaching pivotal barriers at 108.17/25 (Fibo 38.2% of 111.71/105.98 / 200DMA), with the action being boosted by fresh risk mode and exodus from safe havens. Today’s extension above 55DMA (107.52) and former high at 107.76 (11 May) adds to positive signal, generated on Mon
Silver Touches 10-Week High but Returns Near 200-SMA
<p>Silver has climbed considerably higher on Monday, resting near a fresh ten-week high of 17.60, surpassing a strong key level – the 200-day simple moving average (SMA) – but the price failed to end the day above it. The momentum indicators suggest an overbought market as the stochastic completed a bearish cross within the %K […]