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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