Germany's Merkel: Can't say if we are going to reach agreement on EU recovery fund

Germany and Italy agree on the basic structure of the EU-proposed recovery fund, German Chancellor Angela Merkel said on Monday, as reported by Reuters.

However, Merkel further added that she can't say if they are going to be able to reach an agreement on the EU budget and the recovery fund at the summit.

Market reaction

The EUR/USD pair retreated slightly from the daily high it set at 1.1271 after these remarks. As of writing, the pair was still up 0.55% on the day at 1.1360.