The Euro continues growing. Overview for 16.11.2020

The major currency pair continues rising on Monday; market players are still interested in risks.

EURUSD is growing early in another November week. The current quote for the instrument is 1.1864.

The currency market is still quite interested in risks despite the fact that the second wave of the COVID-19 pandemic is spreading extremely fast around Europe and the USA. Last week, market players were pretty happy to hear the news about the vaccine but these emotions died down, just as expected.

The Euro managed to survive even after the Euro Area reported on its GDP for the third quarter of 2020. According to Eurostat, the region’s economy showed -4.4% y/y against the expected reading of -4.3% y/y. However, on QoQ, the indicator showed 12.6% after being -11.8% the quarter before and against the expected reading of 12.7%. The components of the report showed that all major economies in the region posted record GDP expansion rates: France (18.2%), Spain (16.7%), Italy (16.1%), and Germany (8.2%).

The USA reported on the Michigan Consumer Sentiment, which showed 77.0 points in November after being 81.8 points (the highest over the last seven months). Market expectations imply 82.0 points, that’s why such a significant decline was quite an unpleasant surprise. The components of the report show that the future economic prospects fell from 79.2 points to 71.3 points. 

This week, investors will continue monitoring twists and turns of American politics, and the country is scheduled to report on several macroeconomic indicators, including the Retail Sales.