Oil prices are declining due to the increase in US stocks
oil prices declined during the trading session in the European market, approaching its second daily…
EURUSD rose in the European market and recorded its third consecutive daily gain to jump to its highest level in two and a half years. These strong gains are due to the strong positive data issued by the performance of the main sectors that make up the European economy in a month. This December is a good sign of how fast the European economy is recovering in the fourth quarter.
EURUSD added more than 0.5% gains to trade at $1.2212, the highest in two and a half years, from today’s session opening level at $ 1.2148.
At the conclusion of trading on Tuesday, EURUSD rose by 0.1% for the second day in a row, with increasing investors ’appetite for buying high-risk currencies, away from buying the US dollar, which represents a safe and alternative investment currency.
The European economy announced data on the performance of the manufacturing sector during the month of December, which indicated that the sector grew to 55.5 points, the highest in nearly two and a half years, surpassing the consensus expectations that indicated 53 points and the previous reading for November, which recorded 53.8 points.
The data also showed the service sector growth for the same month, registering a reading of 47.3 points, surpassing the consensus expectations of 41.9 points, and the previous reading, which recorded 41.7 points in November.
Germany, the largest economy in the euro area, released strong data on the performance of the manufacturing and service sector for the month of December, and the manufacturing sector grew at 58.6 points, the highest in about two and a half years, beating expectations at 56.4 points and the previous reading for November, which recorded a reading of 57.8 points, and the sector grew Services strongly during December, recording a reading of 47.7 points, better than expectations of 44.1 points and the previous reading, which recorded 46.0 points.
This strong positive data indicates that the European economy is recovering at a faster rate than expected, which reduced market concerns about the economic damage of the second wave of the Coronavirus that spread widely in Europe, which led to the imposition of closure measures again.
The US dollar witnessed a decline against a basket of major currencies in today’s morning trading, with the increase in hopes of presenting US stimulus plans, and markets are awaiting the Federal Reserve issuing the results of its last meeting this year.
The Reserve Bank is set to conclude its monetary policy meeting later in the day, and is widely expected to keep interest rates unchanged, and is also expected to provide new guidance on how long it will continue its massive bond-buying program.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
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