The euro today fell to 2-month lows against the US dollar driven by negative investor sentiment as coronavirus cases in Europe and across the world continue to rise. The greenback’s rally also fueled the EUR/USD currency pair’s decline as investors piled into the world’s only reserve currency despite the looming US elections.
The EUR/USD currency pair today fell from a high of 1.1684 in the early Frankfurt session to a low of 1.1612 in the American market and was slightly off these lows at the time of writing.
The diminished investor risk appetite fueled the currency pair’s decline amid growing fears that the second wave of coronavirus infections will derail the global economy. The pair kept falling despite the release of the upbeat Italian business confidence and consumer confidence reports by Istat; both prints beat analysts’ estimates. The release of the mixed eurozone August M3 Money supply report by the European Central Bank drove the pair lower after the annual figure came in at 9.5% missing expectations by 0.1%. Private sector loans across the euro area grew at annualised 3% during the same month.
The release of the mixed US durable goods orders for August by the Census Bureau was the last straw. The dollar’s rally as tracked by the US Dollar Index to a high of 94.74, applied constant bearish pressure on the currency pair.Â
The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events.
The EUR/USD currency pair was trading at 1.1627 as at 18:38 GMT having fallen from a high of 1.1684. The EUR/JPY currency pair was trading at 122.81 having dropped from a high of 123.15.
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