* After reaching 19-week high, euro gives back some gains
* Analysts say euro needs more to advance towards $1.15
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Olga Cotaga
LONDON, July 20 (Reuters) - The euro retreated after hitting
a 19-week high of $1.1467 on Monday after EU summit chairman
Charles Michel said a recovery fund to revive economies hit by
the COVID-19 pandemic could contain 390 billion euros in grants.
EU leaders have made progress in Brussels after three days
of talks, but they remain at odds over how to carve up the
proposed 750 billion euros ($858.98 billion) recovery fund
designed to help Europe cope with its deepest recession since
World War Two. The next level to watch for the euro would be $1.1495, which
would take the currency to a 1-1/2-year high.
Jane Foley, senior currency strategist at Rabobank, said the
mere fact that the currency could not stabilise above $1.1460
signalled more was needed to push it above this resistance
level.
The euro was last up 0.2% at $1.1446 EUR=EBS .
"There is some good news already in the price. But it does
look like it is struggling this morning to hold above that
$1.1460 level ... as there is a little bit of 'selling the
fact'," she said.
"But I would argue that the fundamentals for the euro have
improved since around about May," Foley said. "We've seen the EU
politicians push forward, we've seen the European Central Bank
also try and oppress fears of fragmentations," she said. "We may
still need another couple of positive headlines to take us to
the next step."
The EU summit was initially due to last two days, but the
fact that the meeting is continuing into a fourth day of
negotiations is evidence that EU leaders are ready to do
everything it takes to maintain unity in the euro zone, Foley
said.
Elsewhere, the U.S. dollar index USD= was flat at 95.95,
with its advance kept in check by investors' strong risk
appetite on the back of expectations of more stimulus from
Europe and also the United States.
A battle in the U.S. Congress over a new coronavirus-aid bill
began late last week as Republicans and Democrats pushed for
their own agenda.
The British pound was steady at $1.2572 GBP=D3 and 0.1%
lower against the euro at 91.05 pence EURGBP=D3 .
($1 = 0.8731 euros)