29.05.2020 EURO/USD Daily Analysis

29.05.2020 EURO/USD Daily Analysis

The European Union’s recovery fund proposal has been dubbed the ‘Make Europe Great Again’ fiscal spending package by analysts at BofA who stated that it is the best shot at ending the region’s equity bear market and reversing the US dollar’s rally. The European Commission on Wednesday proposed to offer 500 billion euros in grants and 250 billion euros in loans in a recovery fund for the region's coronavirus-hit economies. The news triggered a rally in the euro, in European equities and in southern European bonds. The Euro has now jumped 1.8% against the dollar this week to its highest levels since late March. Equities saw $3.8 billion in outflows while emerging markets continued to bleed cash, losing another $1.6 billion, but it was the market's smallest outflow in six weeks EURO/USD traded at 1.1093 up 0.2% today