After almost five days of haggling, EU leaders agreed on a compromise that cuts the share of grants within the 750 billion-euro envelope to 390 billion euros, down from 500 billion euros originally proposed, and the rest in repayable loans. That comes on top of the seven-year, one trillion-euro EU budget that had been a source of contention even before the pandemic.
U.S. policymakers are also set to discuss their next steps in responding to the coronavirus crisis later Tuesday, with investors expecting another economic package in the near future given some earlier measures are set to expire at the end of the July.
Adding to the positive tone, promising early data from trials of three potential Covid-19 vaccines was released Monday, adding to hopes that such a vaccine might be ready by the end of the year. This comes with the number of coronavirus infections having climbed above 14.7 million, with over 609,000 deaths worldwide, according to the latest data from Johns Hopkins University.
EUR/USD traded at 1.1445, up 0.1%, GBP/USD gained 0.15% to 1.2687 while USD/JPY remained close to 107.30.
U.S. crude futures traded 0.1% higher at $40.95 a barrel, while the international benchmark Brent contract rose 0.2% to $43.38. The weekly reports on U.S. crude stockpiles will be closely watched for any clues as to demand as API will offer up its numbers later Tuesday at 20:30 GMT. Elsewhere, spot Gold rose 0.1% to $1,818/oz.