New post
John Wang
in
Forex
May 20 18:35

USD and EUR rush up

New EU recovery fund reinforces the market.
34
2
US dollar edged higher during early trading in Europe on May 20, following the criticism of the coronavirus vaccine. Euro saw even bigger gains, following an agreement over the EU recovery plan.
By 07:00 GMT, the US Dollar Index gained 0.1% and was at 99.457.
The optimism on the market has been cut short by the report on the coronavirus vaccine, published on the healthcare news media STAT. The report claims, that the results of the first test are not detailed enough and are not adequate proof of vaccine efficiency. The criticism has driven the investors back to safe-haven assets.
The greenback was outperformed by euro, which has been driven up by the plan for EU recovery, presented by Germany and France. The governments proposed a fund worth 500 billion euro, which is supposed to help the countries most impacted by the pandemic. The money will be provided via direct grants.
The project is likely to face strong criticism from other members. It is still considered to be a noticeable step in the direction of a strong unified fiscal policy. EUR/USD gained 0.2% and stood at 1.0945.