- The euro is gaining momentum after Merkel and Macron support the European recovery fund.
- EUR / USD hovers around 1.0900, up almost a hundred pips.
EUR / USD extended the gains boosted by a drop in the US dollar at all levels on risk. The announcement that France and Germany proposed to the European Union to jointly increase the debt also strengthened the euro.
The pair reached 1.0913 the highest level since May 5 and is hovering near the top with a strong bullish tone. The EUR / GBP suffered losses while the EUR / CHF jumped above 1.0550, the highest in two weeks.
The US dollar is under pressure, affected by risk appetite. DXY fell 0.65% to a low of 99.70. On Wall Street, the Dow Jones gained 3.45% and the Nasdaq 2.38%. Hope for a coronavirus vaccine sparked optimism.
More recently, share prices have risen further after German Chancellor Merkel and French President Macron announced a recovery fund of around 500 billion euros for the recovery from the coronavirus crisis. Macron said it would be a grant, not a loan.