The euro is down to its lowest level in two months
The euro fell to its lowest level in two months today, after positive economic data from the United States and concerns about a second wave of the Coronavirus combined with weak European indicators to support the rise of the dollar.
The US currency rose to 1.1671 dollars against the euro, the highest level since July 27, after data showed that the private sector in Germany recorded a recovery below expectations in September, amid weakness in the services sector, which was driven by domestic factors.
German consumer sentiment also improved, below expectations, according to a survey.
A previous report revealed that business activity in France in September slowed to the lowest level in four months, and the services sector recorded a weaker than expected performance, while France was struggling to contain a new increase in cases of Covid-19.
And dealers in the pound sterling and the euro are concerned that Britain and the European Union will fail to reach a free trade agreement, which could cause more economic tensions.
Analysts at Commerzbank wrote in a note this morning: "At the present time, the market is dominated again by concern about a second wave of Corona infections, especially in Europe, and this means the return of demand for the dollar again."
The dollar's gains are likely to continue for the time being, while sentiment in Europe is shaken by the Corona virus, but the uncertainty about the US presidential elections this year means that the dollar is exposed to more fluctuations.
The dollar index, which measures the performance of the greenback against a basket of six other currencies, rose to 94.25 points today, its highest level in two months.
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