EUR/USD Trades Steady as Policymakers Discuss Recovery Fund
Arslan Butt • 1 min read
The euro continues to trade steady against the US dollar, supported by an increase in the risk appetite in global financial markets as traders focus on economic recovery after countries begin easing lockdown measures. At the time of writing, EUR/USD is trading at around 1.091.
With several markets being closed on Monday, EUR/USD held steady around the 1.09 level through the previous session in the absence of economic data releases, but has since climbed higher. The pair has also benefited from a weakness in the safe haven US dollar and a preference towards riskier currencies among forex traders.
EUR/USD also received some support over expectations for the setting up of a new recovery fund to help the worst affected nations in Europe overcome the present coronavirus crisis. Last week, news about such a proposal by France and Germany had sent the pair above 1.10 level.
This week’s focus shifts back on the latest developments surrounding this recovery fund and policymakers across Europe come together to discuss creating this recovery fund. While France and Germany have suggested offering grants from the euro recovery fund, other member nations like Austria, the Netherlands, Denmark and Sweden are keen on providing loans from a time-limited fund to aid economic recovery in worst affected countries.