Euro Rallies Against Dollar as Biden Maintains US Election Lead

The euro today oscillated between gains and losses as US election officials continue to count votes in the tightly-contested US Presidential elections. The EUR/USD currency pair fell earlier today after President Donald Trump threatened to use the Supreme Court to stop vote-counting in some states.
The EUR/USD currency pair today fell to a low of 1.1602 in the early Australian session following Trump’s comments before spending the rest of today’s session inching higher and was trading flat at the time of writing.
The currency pair’s initial decline was driven by Donald Trump’s comments, which cast doubt on whether he would accept the election results if Joe Biden won. The single currency later rallied as investors expect the situation to get back to normal after the winner is announced. The release of the upbeat Markit Germany services PMI, which came in at 49.5 versus the expected 48.9 boosted the pair even as the composite PMI print also beat analysts estimates. The upbeat Markit eurozone services PMI also contributed to the pair’s rally as did the in-line eurozone producer price index report for September released by Eurostat.
The currency pair’s rally was further fueled by the weak US ADP employment report, which came in at 365,000 below analysts expectations of 650,000 new jobs. The release of the weak US trade balance report and the US ISM Services PMI had a muted impact on the pair.
The currency pair’s future performance is likely to be affected by the final results of the US election and tomorrow’s German factory orders.
The EUR/USD currency pair was trading at 1.1717 as at 21:13 GMT having rallied from a low of 1.1602. The EUR/JPY currency pair was trading at 122.51 having fallen from a high of 123.02.
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