Euro keep strengthening pushed by monetary policy optimism
The Euro's currency keeps its rise against US dollar on Wednesday's trade, driven by market increasing optimism about the monetary policy.
EUR/USD rose 0.14% to $1.0938, slightly lower than the highest level at $1.0976.
France and Germany proposed a $500 billion to support economic recovery from Corona Virus in the European Union. The stimulus Proposal will be raised through bonds and based on grants instead of loans.
If France-German proposals are supported by States Member, the European Commission will raise funds through the public market. The Proposal is expected to be discussed by the EU finance ministers in this week's meeting. The process of formal decision-making on the EU budget and recovery funds will only begin if the European Commission proposal released in the next week.
The Retracement of Euro from today's highest level comes even when the German ZEW index rises for the second month in a row.
Meanwhile GBP/USD traded 0.5%, higher at 1.2264.
Bank of England's Economist Chief - Andy Haldane said the central Bank saw more pressure on negative interest rates. While Silvana Tenreyro talks about the benefits of the interest rate, citing the experience of other countries in Europe.
Interest rates pressure occur due to the number of British citizens who is seeking unemployment benefits soaring 856,500 which became more than 2 million in April, the highest record in recent years. Gold futures price strengthened on Wednesday's Asian trade
The gold futures price strengthened in the Asian market trade on Wednesday. Previously, gold dropped sharply as a result of the advancement in Corona vaccine research.
The level of safe-haven asset demand as gold was distressed by the development of the Covid-19 vaccine. Gold was back approaching the $1,750 level when Trump senior administration officer admitted that there was an opportunity for the government to lose major loans during the pandemic.
U.S. gold futures for June rose up to 21.20 or 0.6%, to $1,745.60 per ounce. It's one-month highest scale from $1,760.55 before falling back to the previous session amid the early success news for the Covid-19 trial vaccine developed by Moderna.
Spot Gold, which tracks real-time trading in bullion, rises $12.66 or 0.7%, to $1,745.22. On Friday, it reached the highest level of seven and a half years at $1,751.54.
The U.S. Department of Finance and the Federal Reserve are fully prepared to take the losses in seeing the remaining currencies to be distributed by the Government under the fiscal response to the Covid-19 pandemic.
Mnuchin did not detail the worst possible scenario. But he emphasized that the Finance Department is ready to distribute the entire $500 billion to help U.S. struggling businesses to strengthen.