EUR/USD hits highest level since March as dollar slips further to start the session

EUR/USD climbs to a session high of 1.1435

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The dollar is keeping weaker to start the session as the risk mood stays more upbeat, with EUR/USD now climbing to fresh four-month highs of 1.1435 – highest level since 10 March.

The pair is looking to keep a firm break above 1.1400 and also the June high @ 1.1422 currently, which will pave the way for buyers to try and test resistance closer to 1.1500.

For the time being, the risk mood remains the key driver with the dollar faltering across the board as we see cable inch just above 1.2600 while AUD/USD is also trying to keep a break above the 0.7000 handle.

Looking ahead towards the weekend, there are risks to be mindful of for the euro though.

EU leaders will be meeting on 17-18 July to try and reach a compromise on the recovery fund proposal but Dutch PM Rutte sort of cast some doubt on that yesterday as he said that he was “pessimstic” about a deal this week.

The key timeline to watch will be until the end of the month, but any setback this week could spark some selling in the euro. As such, also be wary of headlines in the lead up to the meeting and how things progress on Friday.

But for now, it is all about risk and with buyers looking to crack the key technical level above, it is hard to fight the recent momentum in the euro this week.