Euro Falls to Its Lowest Level in Two Months

The euro fell to its lowest level in two months, Wednesday, September 23, after positive economic data from the United States and concerns about the second wave of Coronavirus infections combined with weak European indicators to support the rise of the dollar.

The US currency rose to $ 1.1671 against the euro, its highest level since July 27, after data showed that Germany’s private sector recovered below expectations in September, amid weakness in the services sector, which was driven by domestic factors.

German consumer sentiment also improved, below expectations, according to a survey.

A previous report revealed that business activity in France slowed to the lowest level in four months in September, and the services sector recorded a weaker-than-expected performance while France struggled to contain a new increase in cases of Covid-19.

Trader of Euro and Pound are concerned that Britain and the European Union will fail to reach a free trade agreement, which could cause more economic tensions.

The dollar’s gains are likely to continue for the time being, while sentiment in Europe is shaken by the Corona virus, but the uncertainty about the US presidential election this year means that the dollar is exposed to more volatility.

The pound fell to $ 1.2692, the lowest level since late July after British Prime Minister Boris Johnson announced new restrictions on economic activities to counter a second wave of the Coronavirus.

The dollar settled against the Swiss franc at 0.9201, after gaining 0.6% yesterday, when the US currency was supported by data showing that home sales in the United States rose to its highest level in nearly 14 years in August.

The dollar index, which measures the performance of the US currency against a basket of six other currencies, rose to 94.25 today, its highest level in two months.