The EU post-coronavirus package, which could be worth several trillion euros, is being drafted for review by the bloc’s leaders by around mid-May.
EU leaders agreed on Thursday to build a trillion-euro emergency fund to help recover from the coronavirus outbreak. However they left divisive details for the EU post-coronavirus stimulus until the summer.
The huge stimulus package to kick-start the EU economy once the coronavirus pandemic ends is likely to feature a mix of loans and grants. The post-coronavirus economic recovery plan may be underpinned by private sector investments.
Von der Leyen said the plan would produce at least 1 trillion euros ($1.08 trillion) of support. She also said the scheme could last up to three years, suggesting the sum could be significantly higher.
Traders worry that further stimulus measures by the EU could be delayed until next year.
The U.S. House of Representatives passed a $484 billion bill to expand federal loans to small businesses and hospitals overwhelmed by patients.
President Donald Trump said late Thursday he may need to extend social distancing guidelines to early summer.
START TRADINGForex – EU post-coronavirus stimulus under drafting
Safe-haven assets such as the dollar were flat, reflecting the market’s unsettled direction.
Four days of U.S. dollar gains ended on Friday, although broader concerns about the euro’s outlook kept dollar bears at bay. The dollar is still in for its biggest weekly rise since early April, after the EU meeting disappointed investors.
A historic collapse in oil prices aided the dollar’s rally this week was aided. As oil prices stabilised, the dollar’s safe-haven appeal receded.
The Canadian dollar edged higher against the U.S. dollar as the price of oil extended its rebound from historically depressed levels. But the loonie was on track to end the week lower. The Canadian dollar was trading 0.1% higher at 1.4056 to the greenback.
The Aussie and kiwi each shed about 0.2%, holding the kiwi below 60 cents at $0.5996 and the Aussie at $0.6359.
The euro initially weakened on Friday, falling 0.4% against the U.S. dollar to a one-month low at $1.07275. The common currency also dropped to a three-year low versus the yen at 115.55 yen. It subsequently erased losses and edged into positive territory in late trading though the outlook remained cautious.
Sterling sank against the dollar after data showed the biggest drop in British retail sales on record. By 1500 GMT, sterling pared some losses to trade 0.04% lower against the dollar at $1.2336.
Oil prices broadly retained their recovery from a price collapse this week that pushed U.S. crude futures into negative territory for the first time ever.
U.S. crude recently rose 3.7% to $17.11 per barrel and Brent was at $21.58, up 1.17% on the day.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money