Euro Falls on Rising Eurozone COVID-19 Cases, Risk-Off Sentiment

The  euro today fell against the  US dollar as  investors sold the  single currency amid rising coronavirus cases within the  euro area dampening investor sentiment. The  EUR/USD currency pair’s decline was further fueled by  the  stalemate in  the  US stimulus talks ahead of  next week’s Presidential election as  equity markets sold off.
The  EUR/USD currency pair today fell from an  opening high of  1.1850 to  a  low of  1.1803 in  the  early European market before proceeding to  trade sideways for  the  rest of  the  day.
The  currency pair’s decline was fueled by  the  rising coronavirus cases across Europe, which has seen many countries impose tough restrictions. Data from the  World Health Organization indicates that Europe recorded 1.3 million new cases last week, the  region’s highest-ever weekly figure. The  risk-off sentiment was also reflected in  the  German DAX and  the  Eurostoxx 50 indices, both of which lost over 2% today. The release of the mixed German IFO business climate index, which fell slightly to  92.7 in  October as  compared to  September’s 93.0 print drove the  pair lower. However, the  current assessment print was better than expected.
The  release of  the  CFTC commitment of  traders reports indicating that euro longs were at  their lowest levels since July also drove the  pair lower. The  pair attempted to  rally following the  release of  the  disappointing US new home sales report for  September by  the  Census Bureau but lacked momentum.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s US durable goods orders.
The  EUR/USD currency pair was trading at  1.1814 as  at  17:47 GMT having fallen from a  high of  1.1850. The  EUR/JPY currency pair was trading at  1223.91 having dropped from a  high of  124.20.
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