They stopped selling the Euro. Overview for 15.06.2020

The major currency pair plunged to the levels of June 4th but then stopped falling. 

EURUSD is ready to reach stability after quite unsuccessful last week. The current quote for the instrument is 1.1240.

There are no important statistics from the Euro Area and the USA today. However, later in the week, investors will surely find something to pay attention to. But right now, let’s focus on the information that has already been released. 

So, the preliminary report on the Consumer Sentiment from the University of Michigan showed 78.9 points in June after being 72.3 points the month before and against the expected reading of 75.0 points. The indicator recovery may show that the “bottom” has been passed and may nothing but improve in the future. 

On one hand, this might be connected to the fact that the labor market is finally reaching stability. On the other hand, it’s still rather unclear how much time the country’s economy will require to emerge from the coronavirus crisis, and that’s slowing consumers down. 

A risk factor here is a possible second wave of the coronavirus outbreak in the USA. Last weekend, there was a serious upsurge in the number of new cases, which may be both a local event and the second wave, which is very feared on the market. If the second wave does spread around the world, the global recovery may take at least another year, requiring Central Banks from all over the world to expand their stimulus programs.