The Euro remains close to the recently struck 19-week peak after Charles Michel, Chairman of the EU Summit, said that a fund to help EU economies recover from the ravages of the Coronavirus pandemic could include grants up to €390 billion. In this, the third day of the discussions, there has been some significant progress though there is a disagreement as to how best to allocate the primary recovery fund of some €750 billion, intended to provide an economic boost to the area. Currency strategists say that the Euro seems stuck at a key resistance level and will need several positive fundamental events to propel the EUR/USD forward.
As of 11:16 am in London, the EUR/USD was trading at $1.1453, a gain of 0.2074% and sliding from the earlier peak of $1.14683, surpassing the 19-week peak of $1.1467. The EUR/GBP was trading higher at 0.9094 Pence, up 0.0396%; the pair has ranged from a low of 0.90658 Pence to a high of 0.91388 Pence.
Review of Tuesday Fundamentals
With a quiet day ahead in terms of fundamental events, market traders will focus on tomorrow's release of the minutes from the latest Reserve Bank of Australia policy meeting, and then the RBA Governor's speech. Currently, the AUD/USD is trading at $0.6993, down 0.0443%. Later in the day, the retail sales numbers from Canada will be released, with analysts predicting a rise in May's month-over-month figures to 20% from 19.1%. Recently, Canada and the US jointly announced that cross border travel will continue to be restricted, and that non-discretionary travel would remain prohibited through August 21st. The USD/CAD pair was lower at C$1.3568, down 0.011%.