At the IMF meeting yesterday, ECB head Christine Lagarde warned governments not to remove support measures earlier than expected. Meanwhile, Chancellor Angela Merkel announced that she is planning to impose tighter lockdown in Germany.

Due to these news, bullish traders failed to push the euro above 1.1917 yesterday. But today, they may succeed on it and bring the quote around 1.1947 and 1.1990. However, the euro must stay above 1.1885 because going below it will allow a decline towards 1.1828 and 1.1795.

Going back to the ECB, Lagarde said: "An ambitious and coordinated fiscal policy should remain because an early end to stimulus could slow economic recovery and exacerbate the long-term negative impact." She added that the central bank's own measures can be adjusted if more support is needed, clearly hinting at an increase in the bond purchase program to limit the growth of yields.

But until now, the EU recovery fund is still in limbo. In fact, French Finance Minister Bruno Le Maire said he is "deeply concerned" about the slow implementation of the € 750 billion bailout plan. The last thing that has been heard about the fund is that the European Commission is not satisfied with the spending plans provided by some member states. Whether this is the reason why the fund has been delayed is uncertain, but what is clear is that the EU economy will contract until the 2nd quarter, so authorities must speed up the process of its allocation.

Meanwhile in Germany, Chancellor Angela Merkel is reported to be planning another lockdown. Apparently, COVID-19 infections in the country surged quite recently, which is very alarming and threatens the economic recovery of the region. Merkel wants to take the issue into her own hands and introduce stricter national isolation.

With regards to macro statistics, factory orders in Germany accelerated this February, rising by 1.2% due to record domestic demand. Excluding large orders, the index grew by 1.5%.

The report said domestic orders increased by 4.0%, while overseas orders declined by 0.5%. But on an annualized basis, the growth in industrial orders improved markedly to 5.6%.

In Europe, PPI last February grew more quickly than expected. Eurostat reported that PPI in the whole Euro area jumped by 1.5% year-on-year, up from a forecast of only 1.4%. On a monthly basis, PPI rose by 0.5%.

As for the UK, Construction PMI climbed to 61.7 points last March, higher than its figure the previous month. Obviously, activity increased, especially in the commercial and civil engineering sectors.

As a result, demand for the dollar decreased, so bullish traders could push the pound to 1.3825 and 1.3876 if they are able to overcome 1.3770. But if the quote drops below the level, GBP / USD will collapse to 1.3670.