Euro Higher As EU Unveils Recovery Package
May 27 2020 - 4:45AM
RTTF2
The euro moved up against its key counterparts in the European
session on Wednesday, as investors await a stimulus plan from the
European Union to support the bloc from the economic downturn
caused by the coronavirus pandemic.
European Union Economy Commissioner Paolo Gentiloni said that
the Commission is proposing a EUR 750 billion recovery fund.
The stimulus package will consist of €500 billion in
non-repayable grants and €250 billion in loans.
European Commission President Ursula von der Leyen is due to
present the proposal in the Parliament.
The EC has received the backing of Germany and France for €500
billion recovery fund last week.
European Central Bank President Christine Lagarde said the euro
area economy is likely to contract as much as 12 percent in 2020 as
member countries struggle to emerge from the coronavirus
pandemic.
On a live webinar, Lagarde said that the actual economic outcome
would come between the ECB's "medium" and "severe" scenarios. The
mild scenario is outdated.
The euro firmed to 1.1031 against the greenback, strongest level
since April 1. On the upside, 1.12 is possibly seen as the next
resistance level for the currency.
The euro advanced to near a 3-month high of 1.0698 against the
franc and near a 2-month high of 118.91 against the yen, after
falling to 1.0589 and 117.71, respectively. Next key resistance for
the euro is seen around 1.10 against the franc and 121.00 against
the yen.
The EUR/GBP pair was up at a 5-day high of 0.8961, after having
dropped to 0.8889 earlier in the session. Should the currency rises
further, 0.92 is possibly seen as its next resistance level.
The euro rose to 1.5152 against the loonie, from near a 4-week
low of 1.5055 seen at 5:00 am ET. The euro is seen finding
resistance around the 1.55 region.
Reversing from early more than a 2-week low of 1.7625 against
the kiwi and a 2-month low of 1.6454 against the aussie, the euro
recovered to 1.7736 and 1.6577, respectively. The euro is likely to
find resistance around 1.84 against the kiwi and 1.70 against the
aussie.
Looking ahead, Fed's Beige book report is set for release in the
New York session.
Euro vs Yen (FX:EURJPY)
Forex Chart
From Mar 2024 to Apr 2024
Euro vs Yen (FX:EURJPY)
Forex Chart
From Apr 2023 to Apr 2024