EUR/USD has edged upwards to touch the highest level in 11 days, driven by a weakness in the US dollar over a lack of clarity on the signing of the interim trade deal. AT the time of writing, EUR/USD is trading at around 1.106.

The Euro has been bearish lately over considerable weakness in Eurozone’s economic growth as a result of a slowdown in the manufacturing sector. The US-China trade war has weighed heavily on leading economies around the world, while Brexit uncertainties have exerted further pressure on European economies in recent times.

Despite the ECB turning dovish, economic growth and inflation have remained weak. However, there has been a slight silver lining as European stock markets have rallied and gained around $3 billion worth of inflows over the past couple of weeks, on positive signals hinting at a possible partial trade deal being worked out between the US and China.

The Euro has also received a boost on the back of optimism surrounding the upcoming general elections in Britain. Nigel Farage’s Brexit Party has announced its decision to stand down against the Conservatives in more seats, increasing the likelihood of Johnson’s victory, which could help the latest Brexit deal pass through the UK parliament before the next deadline of January 31, 2020.