Euro Falls to 5-Week Lows As ECB’s Lagarde Promises More Stimulus

The  euro today fell to  5-week lows against the  US dollar after the  European Central Bank Governor promised to  introduce new stimulus measures next month. The  EUR/USD currency pair’s decline was also fueled by  the  introduction of  new lockdown measures in  many European countries to  curb rising COVID-19 cases.
The  EUR/USD currency today fell from an  opening high of  1.1758 during the  Australian session to  a  low of  1.1651 during the  American session and  was headed lower at  the  time of  writing.
The rising coronavirus cases triggered the currency pair’s initial decline in Europe as studies indicate that a  new variant of  COVID-19 is behind the  second wave of  infections. Many European countries have implemented new lockdown measures to  try and  curd rising infections. The  release of  the  upbeat German unemployment rate by  the  Federal Statistical Office had a  muted impact on  the  euro. The  upbeat Eurozone economic sentiment indicator coupled with the positive consumer confidence report, also had a muted impact on the pair. The upbeat German preliminary inflation report for  October also did not help.
The  release of  the  ECB Governing Council’s monetary policy decisions statement followed by  Christine Lagarde‘s speech caused a  brief pause in  the  fibre’s decline. However, the  trend resumed fueled by  the  upbeat US initial jobless claims report and  preliminary US Q3 GDP report.
The  currency pair’s future performance is likely to  be influenced by  tomorrow’s multiple euro area macro reports.
The  EUR/USD currency pair was trading at  1.1671 as  at  18:40 GMT having fallen from a  high of  1.1758. The  EUR/JPY currency pair was trading at  122.17 having dropped from a  high of  122.88.
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