The euro resumed its rebound from an 11-month bottom on Friday after a debt relief deal with Greece and improvement in eurozone business activity in June.
The EURUSD pair climbed to a six-day top of $1.1674 on Friday, extending its gains for a second straight session after hitting an 11-month trough at $1.1508 the previous session.
Overnight in Luxembourg, the Eurogroup agreed a debt relief deal that will help Greece exit its bailout programme.
Under the new deal with Greece, the debt repayment of nearly 100 million euros of bailout loans will be pushed from 2023 to 2033.
Additionally, a euro area finance ministers agreed to provide Athens a final loan tranche worth €15 billion, which would boost Greece’s cash reserves to around €24 billion as it comes back to the financial markets in August.
Regarding economic data, euro area business activity rebounded from an 18-month low in June, as the flash Composite PMI of manufacturing and services saw a widening growth to 54.8 this month from 54.1 in May.
The improvement would support a euro area growth rate of 0.5 percent in the second quarter, said Chris Williamson, Chief Business Economist at IHS Markit.
Early in the week, ECB President Mario Draghi said the central bank “will remain patient in determining the timing of the first rate rise and will take a gradual approach to adjusting policy thereafter.”
His remarks along with trade war fears have prompted investors to damp the euro and other risky assets and resort to safe havens.
However, the single currency has found a solid foot on Thursday amid the
absence of new threats from US President Donald Trump regarding the imposition
of new tariffs on China.