EUR/USD Exchange Rate Up Despite Europe’s Covid Situation

EUR/USD Exchange Rate Up Despite Europe’s Covid Situation

The Euro to US Dollar (EUR/USD) exchange rate rose in forex exchange today. The pairing is currently up by 0.3% and trading around $1.181.

The EUR/USD exchange rate was up today. This is despite growing concerns over Europe’s Covid-19 situation. Italy is now expected to enter a nationwide lockdown to curb the spread of the virus. 

The Euro, though, has benefited from broader weakness in the US Dollar, the single currency’s biggest competitor. Hopes of a Covid-19 vaccine in the near-term has limited appeal for the safe-haven dollar.

With that, the EUR/USD exchange rate is likely to remain volatile. Europe’s pandemic situation is causing worries as it threatens to further damage the Eurozone’s already delicate economy.

Forex news reported the US Dollar has suffered from risk-on markets today. Investors were becoming more optimistic that they could see a worldwide rollout of Pfizer’s 90% effective Covid-19 vaccine.

Jobless Claims

US economic news reported the release of October’s Continuing Jobless Claims today. However, it beat forecasts and dropped to 6.786 million.

Over 1 million Americans claimed unemployment last week, which was slightly down from the week prior.

This made USE traders feel a little more optimistic about America’s economic recovery ahead.

Other Uncertainties

Nonetheless, US political uncertainties continue despite Democrat Joe Biden’s becoming the new President-elect.

US President Donald Trump has not conceded to Biden’s victory. This leaves markets uncertain as to what could happen next as Trump attempts to challenge the vote.

The US Dollar’s safe-haven demand could be restored amid any further political volatility over the next few days.

Meanwhile, Euro (EUR) traders will be awaiting tomorrow’s release of the Eurozone’s Third Quarter GDP data.

Any improvement in the Eurozone’s economic outlook could strengthen the EUR/USD exchange rate.

USD investors are looking forward to tomorrow’s release of the latest US Michigan Consumer Sentiment Index for November.

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