EuCo announcement that the COVID-19.....>

EURO-DOLLAR: EuCo announcement that the COVID-19 recovery package had been

agreed, ahead of the European open, only sparked a mild positive reaction that

took rate up to $1.1470 before profit take sales countered and pressed it back

to $1.1423. Europe moved into the dip and bounced it back to $1.1467 before it

settled between $1.1430/60 through to the NY open. A dip to $1.1425 quickly

reversed as US equities opened with a bid tone, the risk appetite drove EUR/USD

to a fresh high of $1.1480 before momentum faded (equities eased off highs).

Pullback was shallow, touched $1.1468 but was seen picking up fresh demand ahead

of the 1600BST fix but again meets resistance at the $1.1480 level. Above here

and leaves the YTD high of $1.1495 exposed (Mar9 high) with weak talk suggesting

option interest at the $1.1500 level which may draw defence sales ahead.