Forex Marketz Daily Forex News – Fully Markets Update
The euro currency firmed during the overnight trade session into the Asian trade session today as traders were digesting news of a possible stimulus package proposed by Germany and France to support the European Union as its economy has been hit hard by the Covid-19 (coronavirus) pandemic.
The U.S. dollar also firmed against the Japanese yen as the USD/JPY Forex market inched higher towards a five week high price point. Dollar gains were limited over trader skepticism with a possible coronavirus vaccine.
The euro traded fairly flat against the dollar at 1.0925 after hitting a two week high price point overnight at 1.09755.
The euro currency was also firmer against the safe haven Swiss franc. The EUR/CHF currency exchange rate is up nearly one percent this week and trading at 1.0615. The EUY/JPY Forex market is trading at 118.20 yen, which is near a five week high price point.
The German – Franco Stimulus Proposal Supports the Euro Currency
On Monday the Eurozone’s two largest economies, Germany and France, proposed a €500 billion recovery fund to offer regional grants for businesses effected by the Covid-19 shutdown. Their plan will allow the European Commission to borrow for the entire European Union.
This plan does face some hurdles with the more established Eurozone economies but moves the single currency bloc one step closer towards a cohesive fiscal stimulus package to insulate against the economic damage seen by the pandemic.
Looking at economic data, German investor sentiment improved better than expected in the month of May. Concerns over the Covid-19 virus are improving but linger as the economic damage to the German economy becomes clearer.
Traders Watch News of a Possible Vaccine
STAT, a medical news website, based in the United States, said that early data from Moderna’s Covid-19 vaccine was insufficient.
This has dampened expectations for a quick vaccine solution and capped gains seen with the dollar.
