The euro is trading for a maximum of 4 months on the Bitcoin Cycle market. Investors are looking forward to the EU summit to discuss economic issues.
The ravages of the Coronavirus on the world economy are still present, and the region that was mainly affected was the Eurozone, after Italy was one of the first massive contagion sites in the world, once the disease left Chinese territory.
This generated repercussions in all European countries. From an increase in the recession in the United Kingdom and the British pound, to a lag in well-established economies such as Germany.
Thus, the world leaders of the European Union have not stopped taking measures to repair this damage to their economies.
The Euro in the Face of a Pandemic
The performance of part of the European bloc in maintaining a relatively constant economic stability, and the measures taken against the Coronavirus, positioned the Eurozone at an advantage compared to the other countries.
Since the measures taken by the leaders of the European Union, have served as a guide for other countries in the face of the pandemic.
While the euro was not a currency that generated much confidence during the pandemic, when economic reopenings began in the European bloc, investors were confident of the promises of future economic recovery and early stability.
As a result, the EUR maintained a strong performance against other currencies in the Forex market.
And investor interest was increased as discussions by European leaders pointed to economic efforts.
The Summit and its Importance for the European Currency
The euro was heading for its four-month high. This was in the hope that an EU summit would succeed in advancing a recovery fund that would help pull the EU out of recession and deepen its integration.
The first sessions of the European Union’s economic summit began on Friday. It is the first time EU leaders have met in person in Brussels after months of long-distance meetings.
Investors‘ attention is largely focused on the resolutions and economic agreements emanating from this summit of regional leaders. For, they would be discussing trade agreements that would greatly benefit the euro.
However, many analysts believe that the results of this summit are far from tangible yet. For many diplomats are reluctant to give up too much in these negotiations, in the face of the uncertainty of further affecting their local economies.
Since an agreement or a collapse in the talks would have a major impact on the currency when trade resumes. And therefore an impact on the Forex market.
„A deal would make the euro more attractive as a reserve currency by establishing a central fiscal capacity that can respond to adverse shocks, thus making the monetary union more stable.
Marshall Gittler, head of investment research at BDSwiss
Many traders doubt that the summit will reach an agreement and assume that EU leaders will have to meet again to find a compromise as soon as possible.