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The EURSEK pair has always been volatile, but more so during the current global recession. The Euro had a four-session low then almost a five-day high against the Swedish krona just this past month. Sweden just announced a rather surprising and confusing move amid worldwide fear of the coronavirus, which excludes stricter quarantine. Prime Minister Stefan Lofven instead requested Swedish citizens to avoid non-essential travel and for ill and/or elderly to stay home. The decision followed health authorities’ claim that those who died of the coronavirus showed little to no symptoms. Although local media suggests that its citizens were somewhat supportive of the action, the market is still waiting for its long-term death toll results on its healthier citizens. For now, the pair’s volatile nature will drive investors into buying the Euro until the pair inches back into its previous resistance levels.
Looks like sentiment will persuade investors to root for those who use the coronavirus as a power grab. The Euro has been gaining higher highs against the Hungarian forint, especially after the EU country effectively suspended parliament and local elections. The government recently passed a law that grants nationalist prime minister Viktor Orban the sole authority to take extraordinary measures against the coronavirus crisis, which investors fear could lead to an abuse of power. As economists and concerned spectators urge the European Union to expel the country from its group, investors are expected to back them up with continuous support until the Hungarian law shows relaxation within the country and its neighbors. Unfortunately for the Euro, the recent lower-than-expected report on Germany’s ZEW economic sentiment will drive the euro down against other manufacturing-dependent currencies in the long run.
The Czech Republic just became a “model of anti-coronavirus measures” after it issued an obligation to wear a face mask in public places, which comes with a threat of a 20,000 crown fine. These measures successfully flattened the curve in the country, driving investors into buying its currency. Several media outlets commended the Czech Republic for its “my mask protects you, your mask protects me,” policy for not only its empathic tone, but also how it showed effectiveness with numbers. The obligation to wear a mask has come from the government despite the fact that the country doesn’t have enough face masks to provide its people. Campaigns emerged in the country to bring volunteers sewing masks together for the people who need them, proving that the government’s movements can truly make such a devastating crisis a chance to unite its people.
Czech Republic Prime Minister Andrej Babis told the US President Donald Trump that a nationwide obligation to wear masks outside their homes now a possible solution to flatten the coronavirus curve. The European country issued the strict quarantine measures about two weeks ago, which effectively curbed the spread of the virus in the country. Many media outlets praised the Czech government for these efforts, which also urged citizens to volunteer for creating masks for those who couldn’t be provided for. Meanwhile, the most powerful country in the world is now the most vulnerable to the disease. The Federal Reserve is effectively saving the global economy with a series of monetary programs, and is willing to unload almost all of its remaining firepower to take the world beyond the crisis. Since both countries are making one of the most significant, positive efforts to combat COVID-19, they’re set in stone for high volatility this coming week.
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