Euro hits three-month high as Hong Kong concerns fade

Euro rose in European trade against dollar for the fifth straight session, marking three-month highs on improving risk appetite while concerns about US-China escalation take a back seat. 

EUR/USD rose 0.3% to 1.1151, the highest since March 17 higher after closing up 0.25% on Friday. 

Across May, euro rose 1.4%, marking the first monthly profit since December 2019.

The monthly gains came as European countries eased restrictions for Covid 19 and gradually reopened their economies.

The European Commission announced a plan of 750 billion euros to deal with the Covid 19 crisis, the worst since the thirties. 

According to plans, Italy and Spain are the two most affected countries, and thus will take the long's share of the fund, with Rome getting 173 billion euros, while Madrid will take 140 billion euros, some are grants and some are loans. 

Upbeat data for many major sectors in the European economy in May also bolstered the euro as economies relax strict quarantine measures. 

US President Donald Trump didn't take severe steps against the Chinese government in response to Hong Kong measures, instead sanctioning some officials and withdrawing the special status given to Hong Kong. 

It's clear then the US doesn't want roll back the progress made on trade with China, while aiming to extend talks to the second stage.