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EUR/USD dropped below 1.10 on Tuesday and is struggling to recover as Germany is warming up toward European-wide bonds, and the US is ready to send Americans money, Yohay Elam from FXStreet informs.

Key quotes

“Corona-bonds probably sounds better than euro-bonds. However, given the economic paralysis following the locking down of citizens, everything is on the table. After France pledged €300 billion, Spain discussed €200 billion of spending.” 

“The German ZEW Economic Sentiment plunged to -49.5 – the lowest in a decade.”

“Treasury Secretary Steven Mnuchin is pushing through a plan to send every American a cheque worth $1,000 or more. Additional steps could pile up to a bill worth $1.2 trillion.”

“It is already a severe crisis – threatening to turn into a global recession – is sending investors to the safety of the US dollar.” 

“Perhaps a more comprehensive plan from the eurozone and a pause in additional lockdowns could help the euro stabilize.”