EURO GAINS AS EU LEADERS ATTEMPT TO REACH AN AGREEMENT OVER RECOVERY FUND

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The single currency continues to remain on front foot against the greenback, hovering close to its four-months high amid on going EU summit talks. After negotiating over the pandemic recovery fund from past three days, investors hope that EU leaders would break the stalemate situations and reach an agreement over the stimulus package.

As of this moment, the currency pair is trading at 1.1442, up by 0.15%.

There have been continuous efforts to agree on a 750 billion euro recovery fund to aid the member nations adversely hit by the coronavirus pandemic even though there are differences over the distribution of funds. So, it will be crucial to ascertain the scope and scale of the stimulus package agreed upon by the members as it can potentially bring volatility in the pair.

Coming onto the previous session, EURUSD remained a better bid throughout the session as hopes of potential coronavirus vaccine gave boost to the high yielding currencies, especially euro. In addition to this, the dismal US macro-economic statistics weighed on the demand of US Dollar as the Building Permits and the Prelim UoM Consumer Sentiment came unexpectedly lower than the forecast. Subsequently, the pair settled the day in green at 1.1425, up by 0.37%.

Apart from EU summit, today’s economic docket highlights the Eurozone current data and German Buba Monthly Report.

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