By Yasin Ebrahim
Invesing.com – The euro held most of its gains against the dollar on Monday as France and Germany proposed a $ 500 billion coronavirus relief program to support an economic recovery in the EU.
jump jumped 0.98% to $ 1.0915, just shy of its $ 1.0921 session high.
The funds to support the proposed stimulus program will be raised by the European Commission through bonds.
The move marked a major step forward towards the creation of a coronavirus binding program or coronabonds, although both France and Germany admitted that there was still a need to “unite all member states.”
Several Member States, including the Netherlands and Denmark, have previously expressed opposition to the corona farmers, fearing that the payment of the debt would not be evenly distributed.
The update comes amid investors’ hopes for the further stimulation of the European Central Bank following the recent central bank’s efforts to strengthen the economy.
“We have seen a further effective policy facilitating in Europe in recent days, with the ECB increasing the pace of its PEPP bond purchases, Italy announced that it has finally agreed a € 55 billion package of fiscal measures, and In the UK, the chancellor extended the job retention scheme, “Nomura said.” And there is more to come – we will continue to wait for a European recovery fund and see both the ECB and BoE announce more asset purchases in June. “
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