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  â‚¬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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