Wednesday morning is seeing the Euro consolidating gains made in the aftermath of the European Summit, reaching a 17-month high versus the Dollar. The EU leaders issued a powerful message; after almost a decade of doubts over the ability of the different member states to show solidarity with each other and extend integration to the fiscal level, that is exactly what was delivered. The European rescue fund may be a game changer for the European Union and for its currency. At the same time, the overall market sentiment remains positive, boosted by news of good progress being made in the quest for a coronavirus vaccine. This appetite for risk is negative for the Dollar and other safe haven currencies, further enhancing the vitality of the Euro.
