Everyone wanted Europe on Wednesday, with Germany to relax its fiscal rules to unlock funds for increased military spending and to create an off-budget fund of 500 billion euros for infrastructure spending:
- ForexLive European FX news wrap: Euro stays upbeat as dollar slumps, DAX rebounds strongly
- Forexlive Americas FX news wrap 5 Mar: Tariff reprieve possible.EUR moves higher.USD lower
A note from MUFG sounds a note of caution:
- Trump is sounding “very aggressive” on future tariff action on the EU
- and thus, MUFG says they “are unconvinced that this move higher in the euro will extend much further”
Is the shift in fundamentals enough for EUR/USD to break through that extended band of range trade just to the left?
This article was written by Eamonn Sheridan at www.forexlive.com.
