EUR/USD to be vulnerable on a EU Summit break-up

EUR/USD has been advancing as EU leaders are reportedly closer to striking a deal while hopes for progress on a vaccine are keeping markets despite rising cases, Yohay Elam, an analyst at FXStreet, informs. 

Key quotes

“Leaders in the old continent have been extending their haggling for the fourth day, trading to sign off on a recovery fund – and they are reportedly on the verge of a bargain. The latest from Brussels suggest that the "frugals" are willing to accept €390 billion in grants.”

“EUR/USD is now vulnerable to the downside if the meeting breaks up without an accord, but leaders would not have extended talks if there was not a hope for a deal.” 

“Coronavirus cases continue surging in the US, topping 3.7 million, while the death toll surpassed 140,000. Los Angeles may impose a strict lockdown while Florida COVID-19 infections are ‘out of control.’ President Trump downplayed the developments once again, claiming without evidence that the US has the world's best mortality rate. On the other hand, hopes for a coronavirus vaccine remain high.” 

“US fiscal support is gaining more attention as several of the emergency measures – such as federal unemployment benefits – are set to expire at the end of July. Trump will reportedly meet Republicans to discuss the next steps on Monday.”