March 9-13, 2020. Correction of European currencies is expected

2020-03-08

The previous week was marked by an abnormal growth of European currencies amid a decline in the dollar index. Obviously, this is due to the massive reduction in rates by global central banks. The coming week will mark the position of the European Central Bank of the ECB on this issue, which will determine currency trends.

High probability of correction of major currencies after the ECB meeting, but the reversal clearly indicated by the dollar index indicates the global tactics of capital diversification. Apparently, investors decided during the current crisis to distribute financial flows among European and Asian countries.

In addition to the obvious impact on the economy, coronavirus formats the calendar of political events. In particular, the EU-India summit was canceled due to coronavirus infection in officials in Strasbourg. For the same reason, meetings of the European Parliament will be transferred to Brussels.

In the United States, a major health conference with Donald Trump was canceled, coronavirus may make adjustments to the election race of US presidential candidates and the White House work schedule.