EUR rose against most major rivals in the European session on Monday on hopes that the European Union (EU) leaders would break the deadlock over the proposed multibillion-euro recovery fund to help revive the region’s economy hit by the COVID-19 pandemic.

The EU summit, which started on Friday, was originally planned to last two days. Today, however, the EU leaders are to meet for a fourth day to work out details of their regional recovery plan. The meeting is set to resume at 14:00 GMT.

France's president Macron noted that there have been tense moments but things have advanced in the EU summit and a compromise is likely. Meanwhile, Germany's chancellor Merkel said that she is hopeful that an agreement on the recovery fund would be possible by today. 

If the EU members agree on a recovery fund that should inject confidence in single currency.

In addition, market participants received data from the European Central Bank (ECB), which revealed that the Eurozone's current account surplus fell sharply in May. According to the report, the current account surplus fell to EUR8 billion in May from EUR14 billion in April. Primary income declined to EUR5 billion from EUR8 billion a month ago. Meanwhile, the deficit on secondary income widened to EUR18 billion from EUR12 billion.