(30 March 2020)DAILY MARKET BRIEF 2:The US dollar halted its decline

<p>In the currency markets, the US dollar halted its decline as the investor sentiment soured again. The EURUSD retraced to 1.1068. Due today, the industrial and services sentiment indices may have dived to negative in March for the first time since 2013. Despite low expectations, there is potential for a harsh disappointment. Hence, the single currency could test the 1.10 support to the downside as a result of souring economic data. On top, preliminary inflation figures in Germany should suggest a fall to 1.4% y-o-y in March from 1.7% printed a month earlier. With the significant decline in overall activity and meaningfully lower oil prices, inflation in the Eurozone is expected to dive toward zero in the first half of this year, revive the dovish European Central Bank (ECB) expectations and limit the euro’s overall advance against the other major currencies.</p>