{"id":17824,"date":"2025-03-06T08:43:31","date_gmt":"2025-03-06T08:43:31","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=17824"},"modified":"2025-03-06T08:43:31","modified_gmt":"2025-03-06T08:43:31","slug":"german-fiscal-plans-boost-euro","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-latam\/analysis\/german-fiscal-plans-boost-euro\/","title":{"rendered":"German Fiscal Plans Boost Euro"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-latam\/wp-content\/uploads\/sites\/23\/2026\/03\/image_fx_-2025-03-06T164236.980-1024x559.png\" alt=\"\" class=\"wp-image-17825\" \/><\/figure>\n\n\n\n<p><strong>Key Point<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>EUR\/USD trades near 1.0405, holding gains as German fiscal expansion fuels euro strength.<\/strong><\/li>\n\n\n\n<li><strong>Investors await the ECB decision, with a rate cut expected but future policy guidance under scrutiny.<\/strong><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Euro Holds Ground as German Fiscal Expansion Lifts Sentiment<\/h2>\n\n\n\n<p>The <strong>EUR\/USD pair traded near 1.0405<\/strong> on Thursday, maintaining its recent gains as the euro found support from rising German bond yields and expectations of increased government spending. Germany&#8217;s <strong><a href=\"https:\/\/t.co\/otHje1uVJV\">proposed \u20ac500 billion ($539.85 billion) infrastructure fund<\/a><\/strong> and planned changes to borrowing limits have fuelled optimism, driving investor interest in European assets.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Euro zone bond yields jumped, with 30-year German yields on course for their biggest one-day rise since the late 1990s. That&#39;s after the parties hoping to form Germany&#39;s next government agreed to seek a loosening of the country&#39;s debt brake <a href=\"https:\/\/t.co\/2VyZusMDqi\">https:\/\/t.co\/2VyZusMDqi<\/a> <a href=\"https:\/\/t.co\/JYAjze0shO\">pic.twitter.com\/JYAjze0shO<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1897346373852246176?ref_src=twsrc%5Etfw\">March 5, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Yields on <strong><a href=\"https:\/\/t.co\/2VyZusNbfQ\">Germany\u2019s 30-year bonds<\/a><\/strong><strong> surged as much as 25 basis points<\/strong>, reflecting expectations of additional debt issuance. This move underscores a shift in fiscal policy, as Germany moves away from its traditionally cautious stance on borrowing. Investors are betting that increased government spending will stimulate economic activity, potentially reducing the need for aggressive rate cuts from the <strong><a href=\"https:\/\/t.co\/n98MALsskd\">European Central Bank (ECB)<\/a><\/strong><strong>.<\/strong><\/p>\n\n\n\n<p>The euro rose <strong>0.3% to $1.0405<\/strong>, consolidating after a <strong>4.3% weekly gain<\/strong>\u2014the strongest rally since March 2009. Market participants now await the ECB\u2019s policy decision later in the day, with a <strong>0.25% rate cut widely expected.<\/strong> However, traders will focus on forward guidance, particularly regarding the pace and extent of future easing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Outlook<\/h2>\n\n\n\n<p>EUR\/USD has been in a <strong>strong uptrend<\/strong>, gaining <strong>0.14%<\/strong> for the session. The price <strong>opened at 1.07881 and closed at 1.08031<\/strong>, reaching a <strong>high of 1.08223<\/strong> and a <strong>low of 1.07831<\/strong>. The <strong>moving averages (5, 10, 30) continue to support the bullish trend<\/strong>, with the price holding above them. However, the <strong>MACD is starting to flatten<\/strong>, suggesting that <strong>buying momentum is slowing down<\/strong>, and a potential consolidation phase may be ahead.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1280\" height=\"549\" src=\"https:\/\/www.vtmarkets.com\/en-latam\/wp-content\/uploads\/sites\/23\/2026\/03\/ade8b900-9082-4853-8a02-3caeb91abe4b.jpg\" alt=\"\" class=\"wp-image-17826\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: EUR\/USD rally stalls near 1.0820 as momentum slows, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WAhttps:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WAhttps:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WAhttps:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>If the pair <strong>breaks above 1.0825<\/strong>, further upside toward <strong>1.0850-1.0870<\/strong> is possible. On the downside, <strong>support is seen at 1.0750<\/strong>, where buyers could step in to prevent a deeper pullback. Traders should watch for <strong>ECB policy developments, U.S. economic data, and risk sentiment<\/strong>, as these factors could drive the next move in EUR\/USD.<\/p>\n\n\n\n<p>Traders remain cautious ahead of the <strong>US non-farm payrolls report<\/strong>, which will provide further clarity on the Fed\u2019s stance. <strong>If US job growth continues to slow, the dollar may weaken further, supporting additional euro gains.<\/strong><\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The euro extends gains against the US dollar, driven by rising German bond yields and fiscal expansion. ECB policy in focus. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":17825,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[44],"tags":[59],"class_list":["post-17824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-euro"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/17824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/comments?post=17824"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/17824\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/media\/17825"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/media?parent=17824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/categories?post=17824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/tags?post=17824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}