Gold prices continue its gains on investors buying safe haven
Gold prices rose in the European market on Thursday, extending its gains for the third…
EURUSD started the week’s trading lower in the morning of European market trading and recorded its second consecutive daily loss reaching its lowest level in two weeks. The Federal Reserve is tightening its monetary policy following the spike in US ten-year Treasury yields.
EURUSD traded at $ 1.2030, the lowest in two weeks, down by more than 0.3%, from today’s session opening level at $ 1.2070.
At the close of trading on Friday, EURUSD lost nearly 0.8%, recording the largest daily decline since the beginning of 2021, due to the correction activity and profit-reaping after it hit its highest level in seven weeks at $ 1.2243.
The single currency recorded the second consecutive monthly decline at the end of February’s trading, with losses of about 0.5%. This comes as investors continue to buy the US dollar as a safe haven and the best alternative investment.
The US dollar gained against many global currencies, recording its second daily gain in a row and its highest level in three weeks. This coincided with the broad jump in US Treasury yields.
The dollar index traded at 91.12, the highest in three weeks, gaining more than 0.2%.
Currency markets have moved recently according to signals from the global bond market, as yields rose with growing hopes for an acceleration of the global economic recovery, amid expectations that central banks may resort to raising interest rates earlier than previously expected.
The benchmark 10-year US Treasury yield is currently flat at 1.41%, after surging strongly for a while above 1.60% last week.
The Chairman of the US Federal Reserve, “Jerome Powell,” said that the bank will monitor with interest any rises in inflation rates during the coming period, and added that monetary tightening will come with the improvement of the US economy, these statements come in an attempt by Powell to reduce expectations of tightening monetary policy soon, but The data released this week may be another factor contributing to the fading effect of his remarks.
Jerome Powell is supposed to speak again at the end of the week, but attention will quickly shift to the monthly jobs report due out on Friday.
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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