Euro-Dollar in Fresh Advance as Currency, Virus Concerns Grow Again 

The Euro-to-Dollar rate led a fresh onslaught against the greenback Tuesday that took it across an important threshold on the charts, potentially opening the door to further gains ahead, but the trade-weighted Euro is rising again along with Eurozone economic headwinds that may ultimately undermine the nascent rally. 

The Euro unravelled half of October’s gains last week and could increasingly struggle to keep the Dollar under wraps in the coming days as U.S. election nears, coronavirus spreads on the continent and as investors second-guess the outlook into year-end. 

The Euro-to-Dollar exchange rate was on the back foot and eyeing a test of key support at nearby levels on Thursday as European capitals were clobbered by fresh government restrictions and the economic outlook was ridden over roughshod in the name of coronavirus containment. 

One of the market's best Euro-Dollar exchange rate forecasters have given their views on the outlook for the EUR/USD exchange rate as the critical November U.S. election approaches.

The Dollar eased back into the mid-week session amidst an improvement in global investor sentiment that saw stocks and commodity prices rise amidst ongoing signs that the U.S. November election will ultimately deliver a market-friendly outcome.

The Lira continued in the direction of new record lows Tuesday and could fall as far as 8.50 in the months ahead if Turkey’s unorthodox approach to monetary policy goes unreformed, according to analysts at Commerzbank. who also say an International Monetary Fund (IMF) bailout could now be an inevitability for Turkish authorities.

The Euro-to-Dollar rate could look to retest its early September highs in the coming days during what will be a pivotal week for the outlook on the charts, although corporate earnings season, U.S. stimulus talks, election polls and coronavirus developments are all potential headwinds for the single currency. 

The Euro-to-Dollar exchange rate rallied on Wednesday as U.S. pre-election politics remained the dominant driver of financial markets although it’s a dearth of homegrown domestic inflation that is the greatest and longer-lived threat to the uptrend in the single currency, Westpac says.