Euro on track for largest weekly loss in six months
Euro rose in European trade against dollar for another session away from two month lows, while still on track for the largest weekly loss in six months.
EUR/USD rose 0.15% To 1.1685, after closing up 0.1% yesterday, the first profit in five days away from two month lows at 1.1626.
The dollar index fell 0.1% on Friday for another session on profit-taking away from two-month highs at 94.59.
The greenback was hurt by weak unemployment claims data in the US, which showed economic recovery losing steam as Covid 19 cases rise in the US.
Euro lost 1.3% so far this week, the heftiest loss since March, as risk appetite tumbles and investors prefer safer bets with the dollar.
It's estimated the new economic restrictions in Europe will lead to another services recession during September.
Sterling fell in European trade away from six-week highs against dollar on profit-taking, before talks are resumed between UK and EU on Brexit. GBP/USD fell 0.25% to 1.3116, after closing up 1.6% yesterday, the largest gain since March 27. The largest profit in seven months came as the dollar plunges while UK-EU trade talks take a more positive turn. The dollar index rose 0.2% on Thursday, the first profit in five days away from seven-week lows at 92.47. The Guardian reported a resumption of UK-EU trade talks on Thursday and through the weekend to reach a final deal in the last few weeks of the transition period. Both sides hope for compromise before transition ends on December 31.
The US dollar fell against most its major peers on Tuesday, amid focus on the US presidential debate. The market is focusing on the first US presidential debate between President Donald Trump and Democrat candidate Joe Biden. Analysts expect a bearish market for the US dollar due to the US elections, in addition to more volatility in most market movements. Trump approval ratings in latest polls have declined, while his challenger Joe Biden holding on to a lead over him, but Trump's campaign claimed the polls are "fake". The market is also anticipating the monthly jobs data and the final Q2 GDP reading later this week. The dollar index fell against a basket of currencies by 0.4% to 93.9 points as of 19:48 GMT, after it hit a high of 94.3 and a low of 93.8.
Euro fell in European trade for the sixth straight session against dollar to five-week lows on risk aversion and amid shutdowns in Europe to counter the second coronavirus wave. EUR/USD fell 0.2% to 1.1622 to September 28 lows after closing down 0.25% on Friday, the fifth loss in a row and the longest such streak since September. The common currency lost 1.8% last week, the largest weekly loss since late March as Covid 19 second wave hammers Europe. Across October, euro lost 0.6%, the second monthly loss in a row. Both Germany and France announced full lockdown to control the spread of the coronavirus second wave. The second wave threatens to destroy what modest economic recovery Europe has made in the past few months. In the US, Democratic nominee Joe Biden continues to lead the polls against President Donald Trump as the country prepares to vote tomorrow.