US dollarThe euro hovered near four-month highs against the dollar on Monday, with investors holding out hope that European leaders will break a deadlock and hammer out an economic rescue deal in their marathon summit talks.

The dollar is slightly firmer on the day amid a slightly more cautious risk mood, with virus developments in the US, Japan, Australia and Hong Kong not getting any better since the weekend.

In the United States, the Congress is set to begin debating a new aid package this week, as several states in the country’s South and West implement fresh lockdown measures to curb the virus.

In currencies, the dollar traded against the Japanese yen to 107.28. Sterling was last seen at $1.2547 while euro traded near a four-month high of $1.1452.

In commodities, spot gold eased a tad to 1,807.88 an ounce to hover near a nine-year top. U.S. crude fell 24 cents to $40.35 per barrel and Brent was down 25 cents at $42.89.

US futures are down 0.5% currently following the more mixed picture seen at the end of last week, with the S&P 500 keeping below key resistance at 3,233 to 3,235.

The focus at the start of the week is on Brussels, where European leaders are coming close to striking a compromise on the recovery fund proposal with negotiations set to continue later at 14:00 GMT for a fourth straight day. The incoming headlines will continue to play a key role amid absent relevant market-moving economic releases, either from the Eurozone or the US.