Forex Today: Oil pumped up, critical EU Summit and packed calendar promise high volatility

Here is what you need to know on Thursday, April 23:

After an upbeat Wednesday, tensions are mounting as a busy Thursday awaits traders. The European Commission has floated a €2 trillion plan to revive the economy in the wake of the coronavirus crisis as officials in Brussels are trying to find a compromise between different approaches. 

Ideas about perpetual bonds and leveraging some around €300 billion of top-rated bond issuance have been floated. The southern camp wants more aid  but the northern one rejects unconditional support. Ideas from Spain and France have yet to convince Italy which demands coronabonds, and the Netherlands which opposes any debt sharing. Germany, which approved further fiscal stimulus at home, is set to play a critical role. 

See Yes, the future of the union is at risk, three scenarios for EUR/USD, including parity

The European Central Bank is not waiting for politicians and decided to act amid rising Italian bond yields. The Frankfurt-based institution decided to loosen its bond-buying rules and purchase low-graded debt. The move has lowered bond yields but EUR/USD remains at the bottom of the range.

Oil prices have been recovering with WTI stabilizing around $15 and Brent climbing to around $22. Black gold is rising in a countertrend and also due to President Donald Trump's threat against Iran, following the latter's launch of a military satellite. Nevertheless, the oil glut and lack of space at storages may push petrol prices lower again. 

More: Is it pump or dump? What next for the Oil price

A busy day of economic indicators awaits trades.

Markit's preliminary Purchasing Managers' Indexes in the eurozone are projected to show further deterioration as the coronavirus lockdowns take their toll in the old continent. COVID-19 cases and deaths have been gradually declining in Europe. 

See EZ PMIs Preview: Expectations are digging the bottom, and EUR/USD may benefit

UK PMIs are also on course to further deteriorate, especially in the services sector, but the response may be different. There is no end in sight to the lockdowns.

See UK PMIs Preview: Without a light at the end of the tunnel, the only way is down, GBP/USD may fall

The British government wants to hold a survey about the spread of COVID-19 in the population, a step that will shed light on the disease and will also support opening the economy. Officials assess that Britain is at the peak of the outbreak. 

In the US, the tension between governors and the White House over reopening the economy has somewhat subsided, as New York Governor Andrew Cuomo said his meeting with Trump was "very productive." The situation has improved in several states, yet the economic toll remains high. Weekly jobless claims are projected to remain in the millions.

See Jobless Claims Preview: Progress or exhaustion in the US labor market

Preliminary PMIs are due out in the US as well, and they will likely paint a dark picture, especially of the paralyzed services sector which the US depends on.

See US PMIs Preview: Looking into the abyss

The Australian dollar was hit by Services PMI falling to 19.6 but benefited from a surge in exports in March. China, Australia's main trade partner, seems to be recovering at a slow pace. 

More: Lack of leadership may lead to L-shaped ecowas hit nomy, markets may suffer badly