Eurozone Faces Grim Economic Situation

Although European countries have taken measures to deal with the epidemic, the market outlook remains grim.

The European Central Bank pledged to purchase more than 1 trillion euros of assets this year to alleviate the impact of the epidemic, and governments have proposed hundreds of billions of dollars in spending plans to support businesses and workers.Yet despite all these initiatives, Eurozone remains in a severe recession. A survey conducted on April 14-22 showed that the economy of Eurozone shrank by 3.1% in the first quarter and is projected to shrink 9.6% in the second quarter.

The industry believes that the European Central Bank's easing policy is not over, and it will have to start buying ETFs like the Bank of Japan. The European Central Bank's balance sheet indicates that the central banks debt level currently sits at about 5.3 trillion euros; while expected to reach 6.2 trillion euros by the end of 2020 and further expand to 6.7 trillion euros by the end of 2021.

EUR/USD daily pivot points: 1.0785-1.0801

S1 1.0740 R1 1.0831

S2 1.0702 R2 1.0884