By Yasin Ebrahim
Investing.com – The euro moved off session lows against the dollar on Wednesday, amid reports Germany, the economic powerhouse of Europe, plans to reopen parts of its economy as soon as Monday.
“We have achieved a fragile intermediate success, but we don’t have much room for maneuver, so we must continue by concentrating fully,” German Chancellor Angela Merkel said, according to media reports.
EUR/USD fell 0.55% to $1.0919, but had fallen to $1.0857 at the lows of the day.
The reopening of the economy, however, will be staggered, with retailers of up to 800 square meters allowed to reopen on Monday only if they have a plan for good hygiene.
Schools in the country would begin reopening on May 4, but large public events will remain banned until at least August 31.
The announcement comes as some have flagged the risk of further downside in the euro should governments around Europe continue to delay the easing of coronavirus lockdowns.
“We assume a plan will ultimately be agreed but doubts over the scale of policy support in the eurozone will persist and is a risk factor for the euro if risk-off trading conditions were to re-emerge due to lockdown reversal delays that shift current expectations on the COVID-19 hit to the global economy,” MUFG analyst Derek Halpenny said.
EUR/USD off Lows With Germany to Reopen Economy as Soon as Monday
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.