EUR/USD Tests Daily Highs as Risk Appetite Returns on Deal Optimism

EUR/USD is pushing higher and testing the day's highs as buyers attempt to gain further control of price action. The pair's upward momentum is being driven by a broad shift in market sentiment, with participants increasingly pricing in the likelihood of an imminent deal, easing uncertainty and boosting risk appetite across asset classes. US equities are reflecting this optimism, with the S&P 500 rallying approximately 2%–2.25% and reclaiming a key technical level in the process. The improving risk environment is weighing on the US dollar as safe-haven demand diminishes, providing a tailwind for EUR/USD. On the technical front, the pair is now challenging intraday resistance at the session highs, and a sustained break above this level could open the door for further upside. Traders should monitor whether the bullish momentum holds through the US session, as continued equity strength and fading volatility could reinforce the current directional bias favoring euro buyers over the near term.