EUR/USD pushing against October's top at 1.1830
|- EUR/USD appreciates for the third consecutive day to test October's high, at 1.1830
- The euro appreciates against a weaker USD in a risk-on market.
- Longer-term, the euro is losing momentum against the dollar - MUFG.
The euro is trading higher on Tuesday, with the safe-haven USD depreciating across the board amid a positive market mood. The pair has rallied beyond 0.5% so far today, to reach prices above 1.1830 for the first time since late September.
Risk appetite strengthens the euro
The common currency appreciates for the third consecutive day, boosted by the positive market sentiment after the main equity markets bounced up following a weak opening in Europe.
In absence of relevant macroeconomic releases, the investors have remained fairly optimistic in spite of the lack of progress on the coronavirus stimulus negotiations in the US. With Wall Street posting gains beyond 1%, the safe-haven US dollar is losing ground against risker currencies.
In Europe, the Euro has been unfazed by the lockdown on the Brexit trade talks and the coronavirus spread, with France reporting a record in hospitalizations and Ireland introducing tough restrictions.
EUR/USD losing momentum on the longer-term – MUFG
From a longer-term perspective, the FX analysis team at MUFG sees the euro losing momentum against the USD: “The euro has continued to lose upward momentum against the US dollar over the past month with the pair falling towards the bottom of our previous range between 1.1600 and 1.2100. It has resulted in leveraged funds cutting back long euro positions at the fastest pace in eight months. Bullish sentiment towards the euro has been dampened by the renewed spread of COVID-19 in Europe.”
Key levels to watch
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