The Euro is climbing down slowly. Overview for 23.04.2020

On Thursday, the major currency pair remains weak and continues retreating. 

EURUSD is slowly falling on Thursday afternoon. The current quite for the instrument is 1.0809.

Over the last couple of days, volatility in the major currency pair is extremely low. It seems like investors’ attention is focused on more active assets. There is hardly any reaction to the statistics, but frankly speaking, there aren’t a lot of statistics either. 

Yesterday, the Euro Area reported on the Consumer Confidence, which plummeted to -23 points in April after being -12 points in March and against the expected reading of -20 points. However, everything is quite logical: no one should expect any consumer activism or confidence about the future as long as Europe is under quarantine restrictions.

Also, the ECB Governor Christine Lagarde spoke yesterday: she drew the line in the regulator’s capabilities for further stimulus and support of the region’s economy. For example, this year the ECB is planning to buy sovereign bonds worth 1.1 trillion EUR to provide governments and financial institutions with cheap financing facilities. The regulator is ready to do more, but everything should be well-thought-out and calculated. However, there won’t be any “helicopter money” for households: first of all, it might ruin financial discipline, and secondly, it will create tons of accounting and legal complexities. 

By saying this, Lagarde answered investors’ expectations relating to a deeper and more global asset acquisition on the principle ща the Bank of England. It can’t be called an evident negative for the Euro – there are a lot of stimulus programs. Still, another one wouldn’t hurt.