Euro Falls on Rising EU Coronavirus Cases and Risk-Off Sentiment

The euro today fell against the US dollar driven the risk-off market sentiment amid rising coronavirus cases in the euro area stoking fears of more lockdowns. The EUR/USD currency pair fell to new 2-week lows as US stimulus talks stall ahead of the November 3 Presidential election as opinion polls place Joe Biden ahead of Trump.
The EUR/USD currency pair today fell from a high of 1.1757 in the late Asian session to a low of 1.1689 in the early American market and was near these lows at the time of writing.
The currency pair’s initial decline was driven by fears about rising coronavirus cases in Europe as France imposed nightly curfews in major cities and Germany assesses further lockdown measures. The release of the French consumer price index report for September by Insee had a muted impact on the single currency, which kept falling. The CPI print came in at -0.5% meeting analysts expectations. The release of the Italian industrial production data for August by Istat could not halt the pair’s decline despite industrial orders beating consensus estimates.
The stalemate in negotiations about the US fiscal stimulus bill weighed on investors boosting the greenback as tracked by the US Dollar Index, which hit a high of 93.90 today. The release of the US initial jobless claims report by the Department of Labor, which was higher than expected stopped the pair’s decline.
The currency pair’s future performance is likely to be affected by tomorrow’s eurozone and US releases.
The EUR/USD currency pair was trading at 1.1704 as at 19:41 GMT having crashed from a high of 1.1757. The EUR/JPY currency pair was trading at 123.45 having fallen from a high of 123.77.
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Original from: www.earnforex.com