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September 23, 2020 11:39 am

EUR/USD. September 23, 2020 – Euro is moderately recovering

During yesterday's day, the EUR/USD pair dipped to the level of 1.1670, the current quote of the pair is 1.1710. The pressure on the European currency is exerted by the worsening epidemiological situation with regard to Covid-19 in the eurozone and the UK. The British Prime Minister announced new restrictive measures and invited companies to transfer as many workers as possible to remote work.


In addition, the dynamics of the pair is also affected by the strengthening of the dollar, which rose after the statement of Charles Evans about the possibility of moving to raising rates earlier than planned.


Yesterday's speeches by J. Powell and C. Lagarde increased the volatility in EUR/USD trading. Powell noted that the US banking system is holding up well during the pandemic, but there is much work to be done to restore the economy in the future and the prospects for the banking sector have not been determined. Today the head of the Fed will speak in the House of Representatives, and on Thursday – in the Senate Banking Committee.


The head of the ECB, in turn, said at yesterday's speech that the regulator is closely monitoring the rate of the single European currency. Today, the euro was supported by data from Germany, where the index of business activity in the manufacturing sector rose better than expected – to 56.6 points (the forecast assumed that the indicator would remain at the level of 52.2).


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