Forex Today: Dollar downed after Trump's “no show”, coronavirus headlines, government action eyed

Here is what you need to know on Wednesday, March 11:

The see-saw continues, with markets and the dollar falling on Wednesday after surging on Tuesday. President Donald Trump failed to appear to a press conference where the potential fiscal stimulus was to be revealed. Earlier, stocks and the greenback rallied on hopes for substantial stimulus, especially a payroll tax cut. USD/JPY stands out with a drop of 100 pips from around 104.50. Gold is trading around $1,660, recovering from Tuesday's down day.

US Treasury Secretary Steven Mnuchin is set to testify on the 2021 Budget and may provide further details about the administration's new policies. The number of cases topped 1,000 in the US and The Coachella festival followed SXSW in announcing a cancelation. Experts at the John Hopkins University say that coronavirus is "out of control" in some parts of the country.

Coronavirus worldwide: Nearly 120,000 people have been infected worldwide and the death toll tops 4,200. The number of cases in Italy has topped 10,000. Following Rome's dramatic announcement of severe restrictions, many flights have been canceled. The eurozone's third-largest economy has ramped up its special spending to €16 billion. Spain followed Italy by closing some schools. On the other hand, the number of new cases in China, the epicenter of the disease, is falling. 

GBP/USD is struggling to recover from Tuesday's dollar strength as Prime Minister Boris Johnson struggled to stave off a rebellion in his party over licenses to Huawei. Chancellor of the Exchequer Rishi Sunak will present the new budget later on Wednesday, with markets expecting a significant spending boost and as one MP has been tested positive for coronavirus. Monthly Gross Domestic Product figures and manufacturing output figures for February are of interest, yet the budget is of higher importance.

See UK Budget Preview: Showing the way with fiscal stimulus? GBP/USD has room to rally

EUR/USD has recovered and recovered 1.13 amid this dollar weakness and despite an unimpressive announcement from EU leaders, who held an emergency teleconference. The bloc announced a €25 billion aid fund to businesses hurt by the virus but failed to announce a more coordinated response nor fiscal stimulus. 

US politics: Centrist Joe Biden has extended his lead over left-leaning Bernie Sanders in a round of voting on Tuesday. The former VP defeated the veteran senator in Michigan, a state the latter won in 2016. Contrary to last week's "Super Tuesday", markets shrugged this off. Both candidates canceled rallies in Ohio due to coronavirus fears.

See Biden romps in second Tuesday primaries

Oil prices have been recovering and shrugging off the intensifying price war between Saudi Arabia and Russia. WTI is around $35, still deeply discounted. Oil inventories are eyed today.

US Consumer Price Index statistics for February are set to show core inflation remaining stable at 2.3% yearly. The Federal Reserve, which is set to cut rates again next week, is watching the data.

See US CPI Preview: Oil disinflation coming?

Cryptocurrencies have struggled to hold onto gains and Bitcoin is back below $8,000 once again. 

More Trump's Draghi moment: Markets desire “whatever it takes” message, time for governments to act