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EU Recovery Fund Will Affect Euro Trend

  • Leader
    July 7, 2020
    Germany and France jointly proposed on the 18th to establish an
    European Union recovery fund to offer financial aids to members struck
    by the economic fallout of the pandemic. The news pepped up market
    confidence, sending the euro on a rally, though rather moderate in
    scale.To get more news about WikiFX, you can visit wikifx news official website.

      EUR/USD is recently near the 1.10 resistance level, very close to the
    pivot points of 200 day moving average. The forex research department of
    Credit Suisse observed that though the euro may still face pressures,
    there are still many factors to keep long-position holders excited. If
    an explicit, transparent and sustainable mechanism for fiscal risks
    diversion is established, the market would have less reason to have to
    price in longer term euro breakup risk.

      The recovery fund could have long-lasting impacts on the European
    Union, and getting unanimous approval from the European Commission is
    the major challenge facing this initiative in the coming weeks, as
    Northern European member states are likely to oppose the plan.

      Though many European countries acknowledge the significance of keeping
    the sustainability of both the euro and European Union, the more
    developed Nordic member states have always opposed sharing fiscal
    burdens and debts among member states, which will provide basis for
    forming a European Union finance ministry.