EURUSD deepens its losses in 5 weeks before the US elections

Mohammed Abdelkhalik
November 2, 2020

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EURUSD Weekly Outlook: 2nd November 2020

EURUSD fell in the European market on Monday to deepen its losses for the sixth consecutive day, reaching its lowest level in five weeks, due to investors ’reluctance to take risks, focusing on buying the US currency as the best alternative forex investment, with the increase in closures in Europe To confront the second wave of Coronavirus, and before the burning presidential elections in the United States.

EURUSD fell by 0.2% to $ 1.1622, the lowest since September 28, and the opening price of trading today was at $ 1.1647, and the highest level was at $ 1.1648.

EURUSD ended Friday’s trading, down 0.25%, in the fifth consecutive daily loss, in the longest series of daily losses since early September.

EURUSD Chart - 2nd November 2020

In terms of last week’s transactions, the single European currency lost 1.8% against the US currency, in the second weekly loss in the last three weeks, and by the biggest weekly loss since late March, after the second wave of the Coronavirus swept through most of Europe.

EURUSD declines after many European countries closure

Over the course of all October’s forex trading, the European currency “euro” lost 0.6% against the US currency, “dollar”, in the second consecutive monthly loss, due to renewed concerns about the European economic recovery.

To face the record rise in new cases of Coronavirus, Germany and France announced last week the imposition of a complete ban in the country for a month, as part of attempts to curb the new wave of the disease, which is sweeping Europe on a larger scale than the first wave.

In the United Kingdom, with more than 20 thousand new cases of Coronavirus daily, British Prime Minister “Boris Johnson” announced on Saturday a nationwide lockdown until the second of next December, and sources said on Sunday that the closure may be extended if it deteriorates Situations.

These developments reflect the spread of the second wave of the Coronavirus pandemic, which threatens to destroy any recovery that occurred in major economies after the end of the first wave.

In the United States, Democratic challenger “Joe Biden” is ahead in the national opinion polls over his Republican rival “Donald Trump” although the burning race is seen as converging in a sufficient number of American states, in which President Trump can achieve the necessary assets to win. By 270 votes in the Electoral College for each state separately, which determines the overall winner.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.