The euro today fell to 5-week lows against the US dollar after the European Central Bank Governor promised to introduce new stimulus measures next month. The EUR/USD currency pair’s decline was also fueled by the introduction of new lockdown measures in many European countries to curb rising COVID-19 cases.
The EUR/USD currency today fell from an opening high of 1.1758 during the Australian session to a low of 1.1651 during the American session and was headed lower at the time of writing.
The rising coronavirus cases triggered the currency pair’s initial decline in Europe as studies indicate that a new variant of COVID-19 is behind the second wave of infections. Many European countries have implemented new lockdown measures to try and curd rising infections. The release of the upbeat German unemployment rate by the Federal Statistical Office had a muted impact on the euro. The upbeat Eurozone economic sentiment indicator coupled with the positive consumer confidence report, also had a muted impact on the pair. The upbeat German preliminary inflation report for October also did not help.
The release of the ECB Governing Council’s monetary policy decisions statement followed by Christine Lagarde‘s speech caused a brief pause in the fibre’s decline. However, the trend resumed fueled by the upbeat US initial jobless claims report and preliminary US Q3 GDP report.
The currency pair’s future performance is likely to be influenced by tomorrow’s multiple euro area macro reports.
The EUR/USD currency pair was trading at 1.1671 as at 18:40 GMT having fallen from a high of 1.1758. The EUR/JPY currency pair was trading at 122.17 having dropped from a high of 122.88.
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