15:30 MSK. US: The main index for personal consumption expenditures
The forecast of the euro to the dollar EURUSD today 03/27/2020
The former head of the ECB proposes to write off corporate debt in the fight against coronavirus COVID-19. According to Mario Draghi, countries need to increase public debt and private debt to cancel. Most likely policy in Italy and Spain will welcome such an approach, as both countries have a high level of debt to GDP (government debt + private debt), which is significantly exceeds 100% of GDP. Especially big problem in Italy, where debt has reached such proportions that it can not repay, and serve without external support difficult. Corporate debt relief will allow to restart the credit cycle. Since the last global crisis in 2008 Italy and Spain gained a significant amount of loans, and now it's time to reboot.
On the currency markets in New York and London, of which I spoke to this week, the situation with the dollar-denominated loans has stabilized and now to the subject does not make sense to go back. Consider the actions of the US Federal Reserve. Today, the US central bank will begin to redeem the bonds of US mortgage agencies. As part of the QE-4 operations will be redeemed securities worth 75 billion dollars. purchase plan for the next week the Fed has not yet sounded. What we have in the dry residue? Today forex players should not expect strong growth in the euro quotations. The market will consolidate in the psychological level of 1.1100.
EURUSD recommendation: flat 1.1020 -1.1120