EUR/USD dropped below 1.09 despite Germany passing a new €546 billion fund for defense and infrastructure spending.
The success of Friedrich Merz's project paves the way for further easing of Germany's strict fiscal policy rules. After reaching a compromise with the German Greens, the bill was supported by 513 out of 733 Bundestag members, securing the required two-thirds majority to amend the constitution. The legislation will exempt defense spending from budgetary restrictions, allowing Germany to significantly boost its military capabilities.
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Open account Try demo Download mobile app Download mobile appHowever, the event is overshadowed by uncertainty surrounding the ongoing Trump-Putin talks. Bloomberg, citing sources "close to the matter," reports that Vladimir Putin is demanding a halt to arms supplies to Ukraine. The suspension of U.S. aid is said to be a prerequisite for the Russian president to agree to a 30-day ceasefire.
Source: xStation5
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