German chancellor Merkel also says that she is hopeful that an agreement on the recovery fund would be possible by today


Merkel also adds that the framework for an agreement is currently in place after the lengthy period of talks over the last few days. French president Macron also adds that things have advanced and that "a compromise is likely".

Negotiations on the recovery fund are going to stretch on until later today, though European leaders are reported to come really close to a compromise after some grandstanding by the "frugals" since the weekend.

Talks will continue again at 1400 GMT and as mentioned before, they won't push the limits of any meeting as such unless they are remotely confident of some form of agreement or compromise at the end of the day.

The big question for the euro is whether or not the official headlines later will be enough for a push above resistance at 1.1495-00. Considering stretched positioning, failure to take out the key level may lead to some leveling off in the single currency for now.

That said, a deal being put into place here bodes well for the euro's prospects down the road - even more so with flows moving away from the greenback.

On the latter, it will boil down to how much financial strains will resurface amid ongoing virus developments that are continuing to take a turn for the worse - especially in the US.