The euro today fell against the dollar as eurozone countries initiated fresh lockdown measures to curb the rising coronavirus cases within their borders. The EUR/USD currency pair fell driven by safe-haven flows as investors bought the dollar to hedge against the risks posed by the coronavirus pandemic to the global economy.
The EUR/USD currency pair today fell from a high of 1.1788 during the Australian market to a low of 1.1717 during the early American session but has since recouped some of its losses.
The currency pair fell in the early Frankfurt session as news emerged that Germany’s Angela Merkel was about to agree to new coronavirus lockdown measures with the state governments. The release of the upbeat German import price index report for September by the Federal Statistical Office had a muted impact on the pair. The European Commission President Ursula von der Leyen said that the national response to COVID-19 with EU countries was inadequate, which did not help the euro. News that France was also planning new coronavirus lockdown measures added pressure on the pair.
Concerns about Tuesday’s US Presidential election also weighed on the pair dampening investor sentiment fueling the risk-off mood. Current opinion polls indicate that Joe Biden is ahead of incumbent President Donald Trump with a safe margin. However, Trump is making last-ditch efforts to win voters.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple euro area macro reports.
The EUR/USD currency pair was trading at 1.1751 as at 19:21 GMT having fallen from a high of 1.1788. The EUR/JPY currency pair was trading at 122.59 having fallen from a high of 123.16.
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