The euro today rallied to new 5-day highs against the US dollar as the US Presidential election day caused the dollar to selloff against other currencies. The EUR/USD currency pair’s rally was driven by the upbeat market sentiment, which also fueled a rally in the equity markets led by the Dow Jones and Nasdaq.
The EUR/USD currency pair today rallied from a low of 1.1641 at the Australian open to a high of 1.1740 in the early American session and was trading near these highs at the time of writing.
The pair’s rally today was largely fueled by the US Presidential elections as investors sold the dollar ahead of the election and bought everything else. US equity markets rallied higher as investors bought shares to capitalise on the surge that usually happens after such an election. The dollar sold off as investors fear that there might be a hung result given that incumbent Donald Trump is trailing Joe Biden in opinion polls with a narrow margin. Investors are also worried that Donald Trump may reject the election results if he losses, which is appearing quite likely.
The euro was weighed down by rising coronavirus cases within Europe as a Reuters poll indicates that COVID-19 cases have crossed the 10 million mark after the eurozone recorded 5 million new infections in just one month, having taken nine months to reach 5 million cases.
The currency pair’s future performance is likely to be affected by the outcome of the US election.
The EUR/USD currency pair was trading at 1.1703 as at 19:51 GMT having rallied from a low of 1.1641. The EUR/JPY currency pair was trading at 122.41 having risen from a low of 121.81.
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