Euro resumes gains near two-year peak

Euro rose in European trade against dollar after a hiatus from gains, nearing two-year highs amid hopes the European economy will recover quickly from the pandemic even as the US continues to be ravaged by it. 

EUR/USD rose 0.5% to 1.1769, after closing down 0.3% yesterday, the first loss in eight days on profit-taking away from two-year highs at 1.1782. 

Across July, euro rose over 4.5% on track for the largest monthly profit since 2011. 

The gains came amid perception the economy is recovering after unprecedented governmental support from across the EU, with many EU countries controlling the spread of Covid 19 as well. 

However, the US continues to mark record highs of infections, casting doubt on a true worldwide recovery any time soon. 

The Federal Open Market Committee is wrapping up its policy meeting today, expected to maintain rates at near zero to support borrowing through December. 

The Fed extended the duration of loan support from September to December to bolster the economy during the pandemic, noting the move has already helped the labor sector, households, and companies considerably.