The common currency was seen taking advantage of a weaker USD and some fundamental developments. Germany’s government is reportedly looking at ways to increase government spending. Dubbed as a shadow budget the plans are underway to circumvent the strict debt rules. Reuters reports that officials are looking at ways to set up public entities in order to take advantage of cheap borrowing costs to boost the economy.
EUR/USD Bounces Off Support
The EURUSD currency pair bounced off the support level near 1.1030. Price action was also supported by the falling trend line. The currency pair promptly turned higher. However, in the run up to this week’s ECB meeting, the gains come under question. The next main resistance is at 1.1140.
