Reuters reports on the French €100 billion recovery plan that is to be unveiled later in the day, citing sources familiar with the announcement
- €35 billion earmarked for making the economy more competitive
- €25 billion of which will be allocated to supporting jobs and training
- Plan includes €30 billion for climate transition, €11 billion for transport investment
- Plan to add €80 billion to public deficit, 30-40% budgeted for 2021
France had earlier postponed the announcement of the recovery plan but it is to be unveiled later today. The takeaway here is that there is continued fiscal support to try and bolster the economy, and that matters more for sentiment in the bigger picture.
But for the time being, the euro may find it hard to sustain gains over the next week as the ECB jawboning has begun and we will have to wait until after Lagarde's press conference for a better sense of what to expect from the central bank on the currency.
EUR/USD is now down to one-week lows of 1.1805 currently.
