Euro remains stable ahead of EU proposal


The Euro remained steady on Monday as a big week awaits ahead for the single currency.

European policy makers are set to announce the recovery fund this week which is aimed to help member nations which have suffered from the coronavirus pandemic.

Countries such as Austria, Netherlands, Denmark and Sweden want loans from a time-limited fund for nations struggling to recover from the pandemic, rather than the grants proposed by France and Germany last week for the European Union’s coronavirus recovery plan.

Initially the Franco-German proposal saw the Euro rally at the end of last week but the Euro now remains steady due to the counter proposal. An announcement is set to be made on Wednesday and markets expect any counter proposal or disagreements could push the Euro lower. However if the Franco-German proposal passes then the Euro is likely to strengthen.

Key announcements

2:00 – EUR – ECB Financial Stability Review
3:00- USD – CB Consumer Confidence – Forecast at 87.1 from previous 86.9