The euro today fell against the dollar reversing all of yesterday’s gains driven by the risk-off market sentiment after US President Donald Trump tested positive for COVID-19. The EUR/USD currency pair’s decline was further fueled by the weak inflation data from the euro area, which could derail the bloc’s economic recovery.
The EUR/USD currency pair today fell from an opening high of 1.1744 in the Australian market to a low of 1.1696 shortly after that before rallying higher and then falling again.
The currency pair’s performance today was influenced by President Trump’s COVID-19 diagnosis, which shook investors dousing their risk appetite. The markets’ reaction to the news indicates that most investors expected him to win the November 3 US Presidential Election. The release of the preliminary eurozone consumer price index report for September also did not help the single currency. According to Eurostat, the eurozone’s inflation fell 0.3% in September versus consensus estimates of a 0.2% decline. News that the European Commission President Ursula von der Leyen is set to meet Boris Johnson tomorrow had a minimal impact on the pair.
The release of the disappointing US non-farm payrolls report for September by the Bureau of Labor Statistics drove the pair lower, despite missing analysts’ expectations. The upbeat University of Michigan US consumer sentiment survey had a muted impact on the pair.
The currency pair’s performance over the weekend is likely to be affected by US dollar dynamics and tomorrow’s meeting.
The EUR/USD currency pair was trading at 1.1709 as at 15:44 GMT having fallen from a high of 1.1744. The EUR/JPY currency pair was trading at 123.39, having dropped from a high of 123.99.
© SimonMugo for Forex News, 2020. |
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Post tags: Consumer Sentiment, Coronavirus, CPI, Donald Trump, EUR/JPY, EUR/USD, European Commission, Eurozone, Nonfarm Payrolls, Ursula von der Leyen, US Presidential Election
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