Euro rose in European trade on Wednesday, widening gains for the fourth straight session and hitting two-week highs as it trades above $1.07, amid a positive risk appetite spreading in the markets due to renewed hopes of a July interest rate cut.

Investors now await important data, including German business climate data, which could help underpin the euro.

The EUR/USD

EUR/USD rose 0.15% today to $1.0714, the highest in two weeks, with a session-low at $1.0688.

The pair rose 0.45% on Tuesday, the third profit in a row following strong German services data.

Positive Sentiment

Positive risk sentiment is spreading as weak US manufacturing and services data boosted the odds of a Fed July interest rate cut.

The US stock markets also gained ground in recent days in anticipation for earnings releases from major companies this week.

US Services Data

Earlier European data showed the services sector has accelerated by the fastest pace in a year, which indicates solid European growth in the second quarter.

German Business Climate

Later today, German business climate data are expected for release, with likely positive results that could underpin the euro further above $1.07.