The Euro is full of vim and vigor. Overview for 20.05.2020

Despite a rather mixed external background in the middle of the week, EURUSD intends to grow.

The major currency pair is rising on Wednesday morning. The current quote for the instrument is 1,0940.

The European currency is supported by the fact that Germany and France are seriously discussing the creation of a recovery fund worth 500 billion EUR. The fund’s key function will be providing grants to regions and lines of business, which suffered most from the coronavirus pandemic. 

It’s very important, because it shows investors that combined financial efforts may offer European economies favorable conditions for recovery. No one is going to be left behind, everyone takes joint actions, so the crisis will be overcome. 

Yesterday’s statistics published by the USA showed that the Housing Starts was 0.89M in April after being 1.28M in March. The Building Permits was 1.07M after showing 1.36M the month before. 

Numbers were no surprise: it would be difficult to expect the real estate market, which is very sensitive to demand and purchasing power, to remains stable.