|

EU lawmakers back aid for virus-hit economy in remote vote – Reuters

After 12 hours of heated discussion between the Members of the European Parliament, the bloc’s policymakers agreed to avail emergency funds to combat the coronavirus (COVID-19) pandemic amid the initial Friday morning in Asia, as per Reuters.

Key quotes

It was the parliament’s first ever remote vote following the suspension of meetings due to the risk of coronavirus transmission.

Only a handful of lawmakers gathered in the Brussels plenary chamber with the most of the 688 participating MEPs scattered under lockdown across Europe.

Wearing white, latex protective gloves, she called on the chamber to vote into law a special 37-billion-euro ($40.8 billion) fund to allow the 27 member states to spend more to prop up their economies.

The legislation will also allow an existing natural disaster fund to support strained public health services across the EU.

The assembly also supported the suspension of a rule that strips airlines of their landing slots if they do not run most of their scheduled services - so as to ease an industry crisis unleashed by the coronavirus pandemic.

FX implications

The news failed to provide any major market moves as investors are more concerned with the US House voting and virus numbers. Even so, the EUR/USD remains positive by the press while taking rounds to 1.1036. Further, the market’s trade sentiment seems to have stopped the previous risk-on as the US stock futures are making losses near 0.50% in contrast to Wall Street’s third day of gains by the end of Thursday.

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

More from Anil Panchal
Share:

Editor's Picks

AUD/USD consolidates above 0.7200 after hot Chinese CPI data

AUD/USD is extending its consolidative price action above 0.7200 during the Asian session on Wednesday, uninspired by hot Chinese CPI and PPI data. Meanwhile, rising RBA rate-hike bets act as a tailwind for the Aussie amid Yen-inspired US Dollar weakness. Traders await the release of US inflation figures later in the week for fresh impetus.

USD/JPY stays weak near 153.50 amid aggressive BoJ hike bets



USD/JPY attracts fresh sellers in the Asian session on Wednesday as the strong Reuters Tankan business survey adds to the case for continued BoJ policy normalisation and boosts the Japanese Yen. This, along with a broadly weaker US Dollar, keeps the pair close to a nearly seven-month low set on Tuesday.

Gold rebounds from $4,350; will it last?

Gold is rebounding from a one-week low near $4,350 in the Asian session on Wednesday. The US Dollar, however, struggles to lure buyers amid a rallying Yen, supporting the commodity as traders await the key US inflation data for a fresh impetus. However, the rebound could be short-lived amid expectations of a Fed rate hike this month.

Bitcoin takes a breather, Ethereum and XRP maintain bullish footing
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) are trading with a broadly constructive tone on Wednesday despite BTC's mild pullback over the past two days. The Crypto King holds above $78,000; ETH and XRP remain strong above key Exponential Moving Averages (EMAs), keeping their upside prospects intact.
Gold and stocks: What eight midterm elections did
I went back through every midterm election since 1994 and asked one question of each: when did the stock market make its low for the year, before the vote or after it? In seven of the eight cycles, the low came before the election. In six of the eight, it came between mid-June and mid-October, which is to say in the exact window that the "they won't let it fall" argument says is protected.
Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.