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Euro between manufacturing improvement, dollar’s strength

Euro between manufacturing improvement, dollar’s strength

The euro witnessed volatility during its trading today against the US dollar, in light of the improvement in the manufacturing sector data in the eurozone, in addition to the significant increase in the dollar against major currencies before the 2020 US presidential elections.

The euro against the dollar hit its lowest level in four weeks at the beginning of today's trading at the level of 1.1621, before returning to a gradual rise after the release of the manufacturing sector data, with the euro reaching its highest level at 1.1653 and currently trading at the level of 1.1650.

The PMI manufacturing index in Germany, which is the largest economy in Europe, increased in its final reading in October to 58.2, compared to September's reading of 56.4, while the preliminary reading was of 58.0.

As for the performance of the manufacturing sector in the eurozone, it recorded 54.8 in October from the previous reading of 53.7, and the preliminary reading was 54.4.

On the other hand, the levels of the US dollar rose during today's trading against a basket of major currencies, recording its highest levels in four weeks, according to the dollar index, after recording a rise for the fourth consecutive session, but it quickly returned to decline after the recovery of euro.

The dollar index, which measures the performance of the federal currency against a basket of six major currencies, recorded its highest level in four weeks today at 94.30, before returning to decline to record its lowest level today at 94.03.

The US dollar is witnessing continued support during this period before the US presidential election, which prompted investors to turn to the dollar as a safe haven in the currency market before the election results polls are released.

The strength of the dollar has caused negative pressure on other major currencies, especially in light of the negative pressure from European countries taking lockdown measures to face the second wave of the Corona pandemic, amid the tremendous rise in infections again.

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