EUR / USD pressing October highs at 1.1830

• EUR / USD appreciates for the third day in a row to test the October high at 1.1830
• The euro appreciates against a weaker USD in a market with an appetite for risk.
• In the long term, the euro is losing momentum against the dollar – MUFG.

The euro is trading higher on Tuesday, with the safe-haven dollar depreciating across the board amid a positive mood in the market. The pair has recovered just over 0.5% so far today, to hit prices above 1.1830 for the first time since late September.

Risk appetite strengthens the euro

The common currency appreciated for the third day in a row, driven by positive market sentiment after major equity markets rallied after a weak open in Europe.

In the absence of relevant macroeconomic releases, investors have remained quite optimistic despite the lack of progress in the coronavirus stimulus negotiations in the US With Wall Street posting gains above 1%, the safe-haven US dollar it’s losing ground to riskier currencies.

In Europe, the euro has been unaffected by the blocking of Brexit trade talks and the spread of the coronavirus, with France reporting a record in hospitalizations and Ireland introducing heavy restrictions.

EUR / USD loses long-term momentum – MUFG

From a longer term perspective, the MUFG currency analysis team sees the euro losing momentum against the US dollar: “The euro has continued to lose bullish momentum against the US dollar over the past month with the pair falling towards the bottom. from our previous range between 1.1600 and 1.2100. It has resulted in leveraged funds reducing long euro positions at the fastest pace in eight months. Bullish sentiment towards the euro has been affected by the renewed spread of COVID-19 in Europe. ”

Credits: Forex Street