EUR / USD falls to 1.1630 zone after modest rebound

• The EUR / USD pair falls for the sixth consecutive trading day.
• The US Dollar Index is holding on to daily gains above 94.00.
• Data from the US manufacturing PMI showed an ongoing expansion in the sector.

After losing more than 200 after the moderate change in Central European Bank (ECB) last week, the pair EUR/USD struggled for a significant rebound on Monday. At time of writing, the pair is down 0.14% on the day to 1.1631 and is on track to post its lowest daily close in nearly five weeks.

After the October monetary policy meeting, Christine Lagarde, the president of the ECB, said that the ECB will take action in December and caused the shared currency to come under pressure against its rivals. Furthermore, the growing number of coronavirus cases in Europe forces governments to clamp down and weighs even more on the euro.

On Monday, Italian Prime Minister Giuseppe Conte said they will start setting night curfews in the country and German Chancellor Angela Merkel noted that they are likely to limit person-to-person contacts in private during all winter months.

Eyes on the US Presidential Election

On the other hand, the dollar remains strong ahead of the US presidential elections and makes it difficult for the EUR / USD to erase its losses. The US Dollar Index, which gained more than 1% last week, is currently up 0.28% on the day at 94.14. Investors are likely to stay focused on the election polls for the rest of the day.

In anticipation of this critical event, “Florida may give Biden an early victory. Pennsylvania may give Trump four more years, or trigger contention,” said FXStreet analyst Yohay Elam. “North Carolina is the most critical state for the Senate. However, there is room for surprises and for elections to drag on.”

Hours earlier, data released by both IHS Markit and ISM showed that business activity in the US manufacturing sector continued to expand at a solid pace in October.