EURUSD is falling to trade near its lowest level in four months

Mohammed Abdelkhalik
March 10, 2021

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EURUSD witnessed a decline in the morning of trading today, Wednesday, in the European market, it returned to record its losses against the US dollar to trade near its lowest level in four months that it recorded earlier in the week’s trading. This decline comes with the resumption of US Treasury bond yields. The rise that supports the rise of the US dollar.

EURUSD traded at $ 1.1869, down by 0.3%, from today’s opening session at $ 1.1900, to trade near its lowest level since last November at $ 1.1835.


EURUSD falls after growth data

Yesterday, the European economy released the final figures for the growth of the region during the fourth quarter, and the data showed that the economy contracted by 0.7% in the last three months of 2020, this decline came on the heels of a major recovery in the third quarter and was mostly due to closures that occurred in the last part of the month Dec.

The European Central Bank begins the meeting today and will issue its decisions tomorrow, Thursday, analysts expect that the central bank will leave the tools of the epidemic response such as interest rates unchanged, and will also reaffirm that it will continue to fix interest rates until the unemployment rate decreases and inflation increases. Analysts will be watching comments from the bank regarding rising yields in the United States and other countries.

The US dollar is rising ahead of the inflation data

The US dollar gained against a basket of major currencies to offset its losses recorded yesterday, and this comes with investors returning to focus on buying the US currency as the best alternative investment after the US Treasury bond yields rose to remain near their highest level in 13 months.

The dollar index traded at 92.155 points, up by 0.2%, to trade near its four-month high of 92.50 points.

Later in the day, the US economy is expected to release important data on inflation levels during the month of February, and expectations indicate that the consumer price index will rise by 0.4%, an increase of 1.7% over the year.

Author Mohammed Abdelkhalik

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.