EU's Michel to lower the size of budget to bring the frugals onboard – Reuters

Citing two officials familiar with the proposal, Reuters reported that the European Council President Charles Michel is expected to lower the size of the 2021-27 European Union (EU) budget, in an effort to bring the frugals onboard.

Chairman Michel is due to announce his proposal at 0900 GMT on Friday.

This comes ahead of the 27 national EU leaders meeting in Brussels next week to negotiate over the proposal and reach a final agreement.

Market reaction

The risk sentiment has improved in the European session, as the region’s equities flip to gains and pressure the US dollar.

At the press time, EUR/USD rises 0.07% to trade at 1.1288, having bounced-off lows at 1.1255.