Euro Rallies Against Dollar As FOMC Holds Rates and Biden Leads

The euro today rallied against the dollar as the vote-counting in the US Presidential election dragged on slowly as both parties went to court. The EUR/USD currency pair gave up some of its gains during the American session as the dollar hit a bottom and edged higher at the New York open.
The EUR/USD currency pair today rallied from a low of 1.1711 during the Australian session to a high of 1.1859 during the American session before giving up some gains by the time of writing.
The currency pair rallied higher earlier today driven by positive investor sentiment, which saw risk assets rise as many expect Joe Biden to win the election and reverse some of Donald Trump’s policies. The release of the weak German factory orders report for September by the Federal Statistical Office had a muted impact on the pair. The release of the disappointing eurozone retail sales data for September by Eurostat also had minimal impact on the single currency.
The release of the higher than expected US intial jobless claims data coincided with a the currency pair’s top. The pair then fell before the Federal Reserve’s Open Market Committee announced its monetary policy decisions holding rates unchanged. Fed Chair Jerome Powell said that they were ready to provide more stimulus, which was dovish for the dollar boosting the fiber.
The currency pair’s future performance is likely to be affected by the outcome of the US election and tomorrow’s non-farm payrolls.
The EUR/USD currency pair was trading at 1.1829 as at 21:08 GMT having rallied from a low of 1.1711. The EUR/JPY currency pair was trading at 122.46 having fallen from a high of 123.17.
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