EUR / USD stabilizes near 1.1700, appears to post the lowest daily close in two weeks

• The EUR / USD fell below 1.1700 during the American session.
• Risk aversion helped the USD pick up steam on Thursday.
• Brexit uncertainty and coronavirus fears weigh on European currencies.

After passing the Asian session close to 1.1750, the pair EUR/USD it lost traction in the second half of the day and fell to its lowest level since Sept. 30 at 1.1689. At time of writing, the pair was consolidating its daily losses near 1.1700, shedding almost 0.4% on the day.

DXY rises towards 94.00 driven by risk aversion

Rising fears that the growing number of coronavirus cases could cause nationwide lockdowns in Europe weighed on sentiment and the risk-sensitive euro on Thursday.

France announced night curfews in major cities for four weeks, the UK raised its coronavirus alert level for London to ‘high’ and Germany said it is evaluating additional restriction measures to limit the spread of the virus.

Meanwhile, the lack of progress in Brexit negotiations forced investors to seek refuge and major European stock indices lost between 1.7% and 2.5% on the day.

On the other hand, risk aversion helped the dollar find demand as a safe haven and allowed the downward pressure on the EUR / USD to remain intact. The US Dollar Index (DXY), which rose to a daily high of 93.90, was last seen gaining 0.45% on the day at 93.82.

On Friday, data from the Consumer Price Index (CPI) of the euro area will be analyzed to give a new impetus. Although the European Central Bank (ECB) is not expected to make any changes to its monetary policy before December, a lower-than-expected reading, especially in the underlying CPI, could put additional weight on the shoulders of the euro.

The US economic docket on Friday will feature industrial production and the University of Michigan consumer sentiment index.