By Yasin Ebrahim
Investing.com – The euro pared most of its gains against the dollar on Tuesday, despite cautious optimism over the Coronavirus easing package, which experts say could boost the single currency.
up 0.14% to $ 1.0928, after reducing from session highs of $ 1.0976.
France and Germany on Monday proposed a $ 500 billion coronavirus relief program to support an economic recovery in the EU. The stimulus proposal would be raised through bonds and is based on grants rather than loans.
“EUR / USD is now looking to run the most important level of 1,1000 after the Germans and French made a proposal for a EUR 500 billion rescue package based on grants rather than loans,” said BK Asset Management.
If the Franco-German proposal is supported by the Member States, the Commission would collect the funds through the public markets. The proposal is expected to be discussed by EU finance ministers at their meeting on Wednesday, though the official decision-making process for both the EU budget and the recovery fund will only start with the release of the European Commission’s proposal expected next week, Goldman Sachs (NYSE 🙂 said.
The Euro retracement from today’s highs is coming, even as Germany’s rose rose for the second straight month.
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