EUR/USD consolidates daily losses above 1.1800

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  • EUR/USD remains on track to close in the red on Monday.
  • USD capitalizes on safe-haven flows at the start of the week.
  • The surging number of coronavirus cases in Europe weighs on sentiment.

After posting its highest weekly close in nearly two months at 1.1860 last Friday, the EUR/USD pair reversed its course on Monday as markets turned risk-averse. As of writing, the pair, which touched a daily low of 1.1803, was down 0.35% on a daily basis at 1.1818.

The surging number of coronavirus cases in Europe keeps the shared currency under bearish pressure at the start of the week. Spain declared a state of emergency, France reported more than 50,000 new infections in a single day on Sunday and Germany will reportedly introduce new restriction measures later in the week. Reflecting the risk-off environment, Germany’s DAX 30 and the Euro Stoxx 50 indexes both lost more than 2% on Monday.

DXY climbs above 93.00 on Monday

On the other hand, the greenback is outperforming its rivals boosted by safe-haven flows. The US Dollar Index is currently gaining 0.31% on the day at 93.03 and the S&P 500 is down 2.4%.

Earlier in the day, the data from the US showed that New Home Sales in September declined by 3.5% and the Chicago Fed National Activity Index fell to 0.27 and missed the market expectation of 0.39. 

On Tuesday, Durable Goods Orders, Richmond Fed Manufacturing Index and the Conference Board’s Consumer Confidence Index will be featured in the US economic docket. For the euro, the European Central Bank’s (ECB) monetary policy meeting on Thursday will be the next significant catalyst. Meanwhile, investors will keep a close eye on fresh developments surrounding the coronavirus outbreak in the continent.

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