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EUR / USD falls to two-week lows near 1.1700

  • EUR / USD loses ground and falls to the 1.1700 zone on Thursday.
  • The attention of the markets will be on the EU Summit on Thursday and Friday.
  • The day’s agenda focuses on Lagarde’s speech, the US jobless claims and the Philadelphia Manufacturing Index.

The single currency resumes its decline and drags the EUR / USD to fresh two-week lows at the 1.1700 / 05 band in the second half of the week.

EUR / USD awaiting the EU Summit and US data.

EUR / USD has lost close to 50 pips in recent hours, sliding from the Asian session high 1.1757 to the thirteen day low tested in the European morning at 1.1703.

The feeling of aversion to risk exacerbates its presence in the first hours of the European opening after increasing restrictions in European countries in response to the strong rebound in coronavirus cases.

It also adds to the risk-off mood surrounding the discussions on the additional US stimulus package, which remain stalled and further contribute to the growing uncertainty in the US political arena less than 20 days to go. the presidential elections of November 3.

On the European agenda, the French final CPI for September showed that consumer prices contracted 0.5% month-on-month and remained unchanged from the previous year. In Italy, industrial new orders increased more than 15% month-on-month in August and industrial sales increased almost 6% month-on-month during the same period.

Later in the day, the President of the ECB, Christine Lagarde, will participate in a CNBC online debate on the global economy during the annual meetings of the IMF and World Bank.

Meanwhile, investors are expected to closely monitor developments in the EU Summit, where negotiations between the UK and the EU around Brexit are at the top of the agenda.

Across the pond, the focus is expected to turn to weekly jobless claims, as usual, supported by regional manufacturing indicators measured by the Philadelphia Fed Index and the Empire State Index.

EUR / USD levels

At time of writing, the pair is shedding 0.32% at 1.1707. Below the 1.1700 zone, the next important support will be at 1.1612 (September 25 low), followed by 1.1447 (50% Fibonacci from the 2017/2018 rally). To the upside, a break of 1.1830 (October monthly maximum registered on the 9th) would point towards 1.1917 (September 10 ceiling), en route to the 1.1965 barrier (August 18 maximum).

Credits: Forex Street

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