Euro Trades Near 4-Month Highs As EU Leaders’ Summit Kicks Off

The euro today rallied higher against the US dollar to trade near the 4-month highs recorded on Wednesday buoyed by positive investor sentiment and the greenback’s weakness. The EUR/USD currency pair’s rally was further fueled by optimism about the ongoing EU leaders summit, where many hope they’ll agree on the €750 billion stimulus package.
The EUR/USD currency pair today rallied from a low of 1.1377 in the Asian session to a high of 1.1440 during the American market and was near these highs at the time of writing.
The currency pair traded sideways during the Asian session before embarking on a rally as investor risk appetite surged. The release of the in-line eurozone consumer price index data for June also boosted the single currency. According to Eurostat, the region’s headline inflation remained stable at 0.3%, while the core CPI also came in at 0.3% with both prints meeting consensus estimates. The speech by the European Central Bank’s Luis de Guindos also boosted the pair as he expects the EU leaders to agree on the recovery fund.
German Chancellor Angela Merkel and French President Emmanuel Macron want the fund to be funded mostly by grants. In contrast, the frugal four (Austria, Denmark, the Netherlands, and Sweden) want the funds to be issued as loans. The weak University of Michigan flash consumer sentiment survey for July also boosted the pair.
The currency pair’s performance over the upcoming weekend is likely to be affected by the outcome of the EU leaders’ summit.
The EUR/USD currency pair was trading at 1.1440 as of 16:51 GMT, having rallied from a low of 1.1377. The EUR/JPY currency pair was trading at 122.42, having risen from a low of 120.27.
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