- EUR/USD heads lower to 1.18
- German IFO Business Climate October deteriorates to 92.7.
- US New Home Sales, Chicago Fed index in focus.
EUR/USD heads southwards towards 1.1800 support from the beginning of the week.
EUR/USD weakens following IFO data
EUR/USD trends lower on Monday and heads towards 1.1800 investors prefer safe havens.
Diminishing chances of US stimulus prior to the November elections, together with rising covid concerns over the global economic recovery continue to remain supportive to safe haven demand, capping any potential upside.
The German Business Climate data also dragged on the common currency at the start of the week. The index declined to 92.7 in October from September’s multi-month peak above 93.0.
On the US economic calendar, October’s New Home Sales are due later, as well as the Chicago Fed index.