Euro Rallies on New of Potential COVID-19 Cure, Positive Sentiment

The  euro today rallied higher against the  US dollar on  news of  a  possible cure for  the  novel coronavirus, which saw investors bid up riskier assets such as  the  single currency. The  EUR/USD currency pair was also boosted by  investor optimism regarding the  outcome of  the  ongoing recovery talks between finance ministers from the  European Union‘s member countries.
The  EUR/USD currency pair today rallied from a  low of  1.1255 in  the  late Asian market to  a  high of  1.1324 in  the  early American session but was off these highs at  the  time of  writing.
The  currency pair headed lower earlier in  the  session driven by  negative investor sentiment before reversing course just before the  European session. The  lack of  releases from the  European docket meant that the  single currency was vulnerable to  geopolitical events. Investors bid up the  pair as  the  EcoFin meeting started expecting a  positive outcome, but were disappointed as  they have to  wait for  next week’s meeting between country leaders. However, investors hope that Germany’s Angela Merkel and  France’s Emmanuel Macron will get the  deal they want.
The  pair kept rallying after the  release of  the  US producer price index report for  June by  the  Bureau of  Labor Statistics. The  print mostly missed expectations driving the  US Dollar Index to  its daily lows of  96.44.
The  currency pair’s future performance over the  upcoming weekend is likely to  be affected by  geopolitical events.
The  EUR/USD currency pair was trading at  1.1300 as  at  19:54 GMT, having risen from a  low of  1.1255. The  EUR/JPY currency pair was trading at  120.84, having recovered from a  low of  120.27.
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