Euro off two-week lows as pandemic slows down in Europe

Euro rose in European trade off two-week lows against dollar on track for the first profit in seven days as the coronavirus slows down in Europe, bolstering risk appetite and hurting dollar's appeal as a safe haven. 

EUR/USD rose 0.8% to 1.0878, after losing 0.1% on Monday, the sixth loss in a row to two-week lows at 1.0768. 

European stocks rose in early trading by 3%, carrying on strong gains for another session as Covid 19 slows down. 

In Italy, Europe's Covid 19 epicenter, the rate of new infections and deaths fall to two-week lows. 

Span's government is also expecting a slowdown this week, with the quarantine measures helping to stem the tide of infections. 

Germany also reported a slowdown in infections for the fourth day alongside the rate of deaths. 

The dollar index fell 0.7% on track for the first loss in five days on profit-taking off two-week highs at 100.93, as demand on the greenback as a safe haven tapers off.