The EUR/USD pair strengthened during the North American session, rising 0.16%, as rumors grew that the United States and the European Union (EU) would soon sign a deal similar to the one signed between Washington and Tokyo on Tuesday. At the time of writing, the pair was trading above 1.1770, after hitting a daily low of 1.1710.

Trade news in the US was the main headline, keeping investors on edge as market sentiment fluctuated between risk-on and risk-off. The trade deal between Japan and the US, under which Japan would pay a 15% tariff on US imports, triggered the initial decline in EUR/USD.

However, an article in the Financial Times stating that the EU was close to reaching a deal with Washington, with some similarities to the one signed by Tokyo, triggered a turnaround, with EUR/USD continuing its rally past 1.1750.

In this regard, US trade adviser Peter Navarro said that leaks about the deal should be treated "with skepticism," adding that the US is not negotiating openly.

Data-wise, US house prices reached their highest level in June since 1999, with a 2% increase compared to the same period a year earlier. Existing Home Sales plunged -2.7% (MoM) to 3.93 million units in June from 4.04 million units the previous month.

European Union economic data showed that Consumer Confidence improved to -14.5 from -14.7, although it remains well below its long-term average, according to the European Commission. Attention is focused on the European Central Bank's (ECB) monetary policy decision on July 24. (alg)

Source: FXstreet