We’re going to start by talking about the most traded and popular currency pair in the foreign exchange market, and that is of course EUR/USD, which has been on a rather volatile ride in the past fortnight. The cross began November around the 1.16 level, although it has since fallen sharply and is down about 3% month-to-date to below the 1.13 level and its weakest position since July 2020.
As far as the euro is concerned, the common currency has been met with multiple headwinds. The European Central Bank has remained one of the more dovish central banks in the G10, while investors are growing concerned about the recent increase in virus caseloads in the bloc in the recent weeks.