European session review: EUR trades mixed; growing coronavirus cases, solid European PMIs and upcoming U.S. presidential elections in focus

EUR traded mixed against its major rivals in the European session on Monday as investors weighed soaring coronavirus cases and solid factory activity data from Europe while preparing for a presidential election in the U.S. The euro rose against USD, CHF, GBP and NZD, but fell against CAD, AUD and JPY.

According to Reuters, new coronavirus cases in Europe have doubled in five weeks, with total infections surpassing 10 million. Several European countries such as France, Germany, Belgium, Austria, Portugal and Greece, have announced partial lockdowns amid soaring COVID-19 cases in Europe, while Italy implemented a curfew. Investors worry about the impact of the new lockdown measures on the region's economy.

The latest survey from IHS Markit showed that Europe's manufacturing activity expanded to a two-and-a-half-year high in October, due in part to Germany's rebound following summer business restrictions linked to the COVID-19 pandemic. The manufacturing Purchasing Managers' Index (PMI) rose to 54.8 in October from 53.7 in September and better than the earlier flash reading of 54.4. October’s number was also the best recorded by the survey since July 2018. According to the survey, Eurozone's output growth accelerated to an over two-and-a-half year high and new orders rose by the most since the beginning of 2018.

Ahead of Tuesday's election, polls show a strong lead (by 10 points) in national polls for former Vice President Joe Biden, but narrowing gaps between the Democratic candidate and the U.S. President Donald Trump in many of the seven key "swing states" that will ultimately decide the elections' outcome.