Expectations from the week.

The main event of this week is a US FRS meeting. Nobody expects that officials would change the key interest rate, however, splashes of the USD and stock volatility are quite possible. Investors will pay attention to the FRS opinion about the future of the quantitative easing program and relation to the historic record-breaking stock market rally, which has bubble characteristics.

The specific feature of the anti-coronavirus fund is that it will partially consist of irrevocable grants (EUR 390 billion) and partially (EUR 360 billion) of long-term loans practically with zero rates. For the first time in history, loans will be taken on behalf of the European Union rather than individual states. The main part of the aid will be granted to the most economically vulnerable countries that suffered from the pandemic more than others – Italy and Spain, while mainly rich countries of the Western and Northern Europe will serve as sponsors.

Experts point to the fact that the common EU could have had very hard times, down to disintegration, without this agreement. And now, on the contrary, the union moves to a completely new level of integration, which is extremely good for the European currency. It is not a surprise that the EUR futures skyrocketed having broken the spring high by 1.15. The trend continuation looks here as the most probable scenario. Deutsche Bank experts forecast that it has the growth potential of up to 1.2.

After the EU summit results were reported, the dollar is under the pressure of sales, since it became less interesting in the capacity of a protective currency. Weakening of the greenback, in its turn, works in favour of bulls in commodities. Raw materials historically showed themselves excellently in times of a weak dollar.

Precious metals demonstrate especially intensive growth. Thus, the silver prices broke the multi-year highs during a couple of days and there is already a double growth from the March lows.

Microsoft (MSFT) published a traditionally strong report. The revenue exceeded not only analyst expectations but also pre-crisis levels. As regards fundamental indicators, the company is still one of the strongest in the market. And although the Microsoft stock reacted by profit registration, this technology sector flagship continues to trade near historic highs.