The euro extended gains on Wednesday, climbing towards a two-week high, as a Franco-German proposal for a common fund that could move Europe closer to a fiscal union boosted demand for the currency.

But the euro’s gains were hardly broad based with the single currency giving up ground against the perceived safe-haven Swiss franc as the size of the proposed fund is seen as being relatively small compared to the size of some of some European economies.

The euro edged up 0.2% to $1.0960, near to a two-week peak of $1.09755 reached on Tuesday. Breaking that level could open the way for a test of its May 1 high of $1.1019.

“It is a sign that major players are getting serious about pushing the limits toward what we think will inevitably be needed: region-wide fiscal spending to offset the costs of the crisis,” John Velis, an FX strategist at BNY Mellon said, referring to the Franco-German proposal.

It should be noted that France and Germany have proposed a 500 billion euro Recovery Fund to offer grants to regions and sectors hit hardest by the coronavirus pandemic and to allow borrowing by the European Commission on behalf of the whole EU.