- EUR / USD remains on track to close lower on Monday.
- The USD capitalizes on safe-haven flows at the beginning of the week.
- The growing number of coronavirus cases in Europe weighs on confidence.
After posting its highest weekly close in nearly two months at 1.1860 last Friday, the pair EUR/USD it reversed course on Monday when markets turned risk averse. At time of writing, the pair, which hit a daily low of 1.1803, was down 0.35% on the day at 1.1818.
The growing number of coronavirus cases in Europe keeps the shared currency under downward pressure at the beginning of the week. Spain declared a state of emergency, France reported more than 50,000 new infections in a single day on Sunday, and Germany is reported to introduce new restriction measures later in the week. Reflecting the risk environment, the German DAX 30 and Euro Stoxx 50 indices lost more than 2% on Monday.
DXY rises above 93.00 on Monday
On the other hand, the dollar is outperforming its rivals driven by safe-haven flows. The US Dollar Index is currently gaining 0.31% on the day at 93.03 and the S&P 500 is down 2.4%.
Hours earlier, US data showed September new home sales declining 3.5% and the Chicago Fed National Activity Index fell to 0.27 and disappointed the market expectation of 0.39.
On Tuesday, durable goods orders, the Richmond Fed Manufacturing Index and the Conference Board Consumer Confidence Index will all be included on the US economic agenda. For the euro, the Bank’s monetary policy meeting Central European (ECB) Thursday will be the next significant catalyst. Meanwhile, investors will closely follow new developments related to the coronavirus outbreak on the continent.
Credits: Forex Street
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