EURUSD opened in the European market with a decline, recording the third consecutive daily loss…
USD index is about to make its fourth consecutive monthly loss
EURUSD Forecast & Technical Analysis
USD index fell in the European market on Monday against a basket of global currencies, to continue its losses for the second consecutive day, approaching the 27-month low, about to incur a fourth consecutive monthly loss, due to possibility of US interest rates remaining low for a long time.
USD index fell by 0.15% to 92.15 points, and the opening level of trading today was at 92.30 points, and the highest level was recorded at 92.48 points.
USD index ended Friday’s trading, down by 09%, in the third loss in the last four days, with the continued selling of US currency against a basket of major and minor currencies.
Earlier this month, the index recorded its lowest level in 27 months at 92.13 points, due to growing doubts about the world’s largest economy recovering from Coronavirus crisis, which is a worst economic crisis in the history of United States since the Great Depression in the 1930s.
The USD index continues losses
In terms of August trading, which ends when prices are settled today, the USD index has lost nearly 1.4% so far, about to incur its fourth consecutive monthly loss.
These losses resort to a gloomy outlook for US economy, which is severely affected by Coronavirus pandemic, in addition to the political crisis between Republican Party and its Democratic counterpart, which halted the approval of a new fiscal stimulus package in the country, in addition to increasing chances of US interest rates remaining low for a long time after recent statements of Reserve Board Chairman. Federalist “Jerome Powell.”
During his speech at Jackson Hole Economic Conference, Powell unveiled a major change in US monetary policy, which is likely to keep interest rates low for quite some time.
Powell said that US Central Bank will allow inflation and employment to rise above target levels to support the economy in overcoming the damage caused by Coronavirus pandemic, which means that bank will allow inflation to exceed an average of 2%.
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.