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The eurozone needs to be ready to ramp up fiscal spending to battle the economic downturn, Reuters reported on Tuesday, citing a joint document adopted by EU finance ministers including Germany’s Scholz.

“If downside risks were to materialise, fiscal responses should be differentiated, aiming for a more supportive stance at the aggregate level, while ensuring full respect of the Stability and Growth Pact,” the official statement read.

Euro erases daily losses against USD

The EUR/USD pair, which slumped to its lowest level in 34 months at 1.0821 following the disappointing ZEW data, gained traction on this headline and was last seen trading at 1.0835, where it was virtually unchanged on a daily basis.