Following two consecutive days of a marathon of discussions, European Union (EU) finance ministers, Eurogroup, finally agreed on half-a-trillion euros worth of economic stimulus relief package to rescue their economies heavily battered by the coronavirus pandemic, per Reuters.
However, the agreement failed to resolve the impending issues as how they would finance recovery in the bloc headed for a steep recession.
“The agreement was reached after EU powerhouse Germany, as well as France, put their feet down to end opposition from the Netherlands over attaching economic conditions to emergency credit for governments weathering the impacts of the pandemic, and offered Italy assurances that the bloc would show solidarity,” Reuters reported.
French Finance Minister Bruno Le Maire was quick to comment: “Europe has shown that it can rise to the occasion of this crisis,”, praising what he said was the most important economic plan in EU history.
The above agreement is likely to bode well for the shared currency but the doubts over its financing linger, which have seemed to leave the EUR buyers in the lurch.
Therefore, the EUR/USD pair remains unfazed, in a consolidative mode above the 1.09 handle, having faced rejection at 1.0950 in the US last session.
The major posts small gains to now trade at 1.0938, challenging highs on renewed US dollar weakness across the board.