- EUR/USD hits multi-week low, levels not seen since 12 August.
- Risk aversion helps boost the US dollar.
- ECB’s Christine Lagarde talks down the Euro.
EUR/USD selling intensified and the pair has touched a new multi-week low around 1.1730.
The US dollar came back in favour as the coronavirus concerns increased amid uncertainties regarding the fiscal stimulus package from the Congress and the Fed as well as the US political climate ahead of elections.
Today, the traders will be watching out for the first testimony by Fed chief Jerome Powell ahead of two more testimonies on the coming days – he will be explaining about the Fed response to the economic situation because of the pandemic. The US dollar will be under constant watch this week because of this high profile action.
EUR/USD selling intensified after the comments from ECB’s Christine Lagarde on Monday that the bank will not be ignoring the appreciation in the euro. Lagarde’s words diluted her stance during the recent ECB meeting that there was no need to overreact to the currency’s strength against the dollar.