On Tuesday, US President Donald Trump said that he wants to stop negotiations on the long-awaited coronavirus relief bill. However, yesterday, he changed his tone and declared that he is ready to sign a decree, but on the condition that a separate project will be given to him, and that is additional incentives worth $ 1,200 to Americans.

Aside from that, Trump raised the issue that airlines also need support, thus, he said that he plans to allocate about $ 25 billion, which led to a sharp rise in shares on the stock market. Support for small businesses were also mentioned, and for that, the president plans to send about $ 135 billion under the payroll protection program. These ideals gave favorable effects to risky assets and the US stock market. However, the same can not be said on the Japanese yen and the US dollar, which saw a significant drop in demand.

Meanwhile, the Federal Reserve published its latest protocol yesterday, from which it was indicated that the current recovery of the US economy is much faster-than-expected. However, although such news is very encouraging, most Fed leaders are worried that it may start to slow down soon, especially since fiscal support is starting to weaken. Almost all governors said that further support is needed to sustain and maintain economic recovery, and that support should not be provided in isolation, but in conjunction with the Federal Reserve's lending program and monetary policy.

With regards to monetary policy, a division of opinion was seen in the ranks of the Fed, as there are those who believe that the Central Bank should adhere to a zero interest rate policy for a longer term, while others believe that the committee should respond in a timely manner to changes in inflation. Nonetheless, as of the moment, the Fed will maintain near zero interest rates for quite a long time, until these specific conditions are fulfilled: unemployment rate at 3.5% -4.0% and inflation at 2.0%.

Anyhow, since the protocol came out as generally expected, the market remained unaffected, thereby trapping the EUR / USD pair within the sideways channel it hung at the beginning of the American trading session. A lot depends now on the positions that will be set up at the resistance level of 1.1750, as a breakout to the 18th figure will lead to a large bullish move towards the highs at 1.1840 and 1.1870. But if pressure on risky assets returns, and this will be triggered if Donald Trump changes his stance again on the coronavirus relief bill, the quote may reach the level of 1.1750, and a breakout below it will lead to a strong downward move towards the level of 1.1700, and then towards 1.1650 and 1.1610.