The mood in the markets shifted yesterday, with the sentiment of investors having a much more positive stance than of late and this has benefited the Euro with the single currency gaining more than 1% to the Dollar since the start of the week. The bullishness is driven by a combination of good news with hopes raised about a vaccine for the coronavirus being available in the not too distant future and the joint proposal by Germany and France for a recovery fund that would be allocated to the EU’s budget.
The Franco-German agreement is extremely significant as it could pave the way to some form of debt share, something that has so far been rejected by northern member states including Germany. Should other member states be in agreement we could be looking at a pivotal change in dynamics and that will bring much needed stability to the EU and offer further support to the Euro.
