- EUR/USD bears were in command on Friday.
- The pandemic worries support the greenback and pull down the euro.
- USD bulls awaiting clarity on stimulus deal.
The EUR/USD fell to its two-month lows on Friday as the economic worries from the second wave of coronavirus infections increased the haven-linked US dollar appeal.
The equity markets shed some weight after the hopes of a fiscal stimulus package from the US Congress faded. Earlier reports on Thursday had indicated progress towards a stimulus bill that might soon be put to the vote.
A weaker than expected US Durable Goods Orders, which increased by a mere 0.4 Percent in August, didn’t dent the US dollar bull run. The figures are a big fall from the 11.7 Percent revised reading for the previous month. Ex-transport orders also rose by 0.4 Percent in August, much below expectations. However, business investment gauged by the non-defence capital goods orders (excluding aircraft and parts) gave a ray of hope with a 1.8 Percent jump in the period.
The US dollar flew up to post the biggest weekly gain since March and the EUR/USD went to the lower end of its weekly trading range near 1.1600.
The presidential election worries and the lack of support from the congress in passing a stimulus bill checked the dollar bullishness. These factors helped the major to post gains at the start of the new trading week. ECB President Christine Lagarde’s introductory statement at the ECON committee of the European Parliament, US presidential debate on Tuesday, and US economic data later in the week are the key events awaited by the traders.
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