The Euro strengthened significantly. Overview for 19.05.2020
The major currency pair is regaining positions; investors are switching towards risks.
On Tuesday, EURUSD is feeling positive and trading upwards. The current quote for the instrument is 1.0942.
The American economy is supported from all angles. Last week, the Democratic Party piloted a bill in the House of Representatives to dole out an additional three trillion dollars for supporting the country’s economy and eliminate the consequences of the Covid-19 pandemic. It happened despite stubborn opposition of the Republicans. The bill includes 1 trillion USD for improving the situation in state and local authorities, while another 1.2 trillion will be intended for individuals, unemployed, and lessees.
As the House of Representatives commented on this initiative, “Not to act now is not only irresponsible in a humanitarian way, it is irresponsible because it’s only going to cost more”.
Market players are quite positive about this idea despite some doubts that the bill might not pass in the Senate and get it signed by Donald Trump. The key reason for this is that the Senate is controlled by Republicans and it will surely be a hell of a verbal fight.
At the same time, it’s pretty obvious that the country’s economy really needs additional support. According to Jerome Powell’s speech for the Senate, the American regulator intends to use all possible tools to support the system at the time of crisis.
Later today, Powell and the United States Secretary of the Treasury will hold an online conference in the Senate, during which they are planning to report on how the stimulus package of 2 trillion USD was spent.