The euro eases its rally against the US dollar into early trading on Thursday, supported by the improvement in the overall market sentiment and reports about the creation of a recovery fund to help Eurozone countries recover from the economic impact of the coronavirus pandemic. At the time of writing, EUR/USD is trading around 1.095.

After falling below 1.07 in mid-March over rising worries about the global pandemic, EUR/USD has gained nearly 1.5% of its value over the past few weeks over expectations of economic recovery after some countries started easing lockdown restrictions and getting back to work. This week, the pair gained some strength after France and Germany proposed to raise 500 billion euros to aid financial recovery for the worst affected countries in Europe.

The improvement in risk appetite has also prompted traders to close their short positions on EUR/USD, boosting its bullishness lately. In addition, the pair has also benefited from a weakness in the US dollar recently over rising US-China tensions even as markets hope for economic recovery to begin soon.

Earlier today, EUR/USD surged to a three-week high over the positive sentiment prevailing in markets. Even though concerns about the economic fallout from the pandemic weigh on markets, traders are looking forward to a pick-up in activity as economies reopen across the world.