(05 JUNE 2020)DAILY MARKET BRIEF 2: ECB announced Purchasing Program (PEPP) by 600 billion euros

<p>In Europe, however, more monetary stimulus gave a decent boost to the single currency. Though the worse-than-expected slump in German factory orders triggered a soft kneejerk sell-off this morning. The European Central Bank (ECB) announced at yesterday’s monetary policy meeting the extension of the Pandemic Emergency Purchasing Program (PEPP) by 600 billion euros, versus 500-billion-euro expected by analysts. The additional 100-billion-euro has been perceived as Christine Lagarde and the ECB’s confidence on the actual monetary policy and their determination to give support to the European economy despite the German court’s request for justification of their massive sovereign debt purchases. As a result, investors continue putting their trust in the ECB and this gives a sustainable positive spin to the single currency. The EURUSD pulled out the final major technical resistance 1.1290, the minor 76.4% Fibonacci retracement on March debasement, before 1.1495, the year-to-date peak. At thi</p>