Oil Prices Outlook – 8th December 2020 Oil prices witnessed a decline during trading today,…
EUR/USD is moving away from the 3o months high due to the corrections
EUR/USD fell at the beginning of trading on Monday in the European market, recording the second consecutive daily decline. This decline is due to the correction and profit-taking processes that dominated investors after the euro reached its highest levels in two and a half years earlier in the trading, This is in addition to the investors’ avoidance of risk due to the weak data revealed by the United States regarding the business sector, and another round of trade negotiations between Britain and the European Union will soon start, as investors await the announcement of a trade agreement before the final Brexit scheduled for December 31.
During Monday’s trading, EUR/USD fell by 0.4%, to trade at $ 1.2085, from today’s opening session at $1.2130.
At the end of last Friday’s trading, the EUR/USD pair recorded losses of about 0.2% in the first daily decline in four days, with the activity of corrections and profit-taking after it recorded its highest price in two and a half years earlier in trading at $ 1.2177.
During the past week, the single currency achieved gains against the green currency of about 1.3%, in the third consecutive weekly rise, supported by the losses of the US dollar, which resulted from the increased appetite for risk among investors, following news that indicated the return of US stimulus talks and the possibility of approving a relief project before the end of the year This is in addition to the continuous positive developments of Coronavirus vaccines.
EUR/USD is waiting for Brexit deal
Markets are awaiting another round of trade talks between Britain and the European Union to reach an agreement to regulate future trade relations between the two parties after the Brexit scheduled for December 31.
On the other hand, members of the European Central Bank warned of a significant rise in the single currency, which would have a negative impact on the recovery of the European economy.
Later in the day, the European economy will announce the reading of the Sentix consumer confidence index for the month of November and is expected to record 11.9 points compared to the previous reading of 10.0.
USD is recovering from its lowest level in two and a half years
The US dollar rose against a basket of major currencies, registering its first daily rise, as part of the recovery from its two and a half year lows that it hit earlier.
The dollar index, which evaluates the performance of the greenback against the six other major currencies, rose by more than 0.5% to trade at 90.72 points, up from its lowest level in two and a half years at 90.471 points.
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.