EURUSD continues to decline due to the corrections and profit taking
EURUSD began trading on Monday, in the European market, continuing to record its losses for the second day in a row, with the correction operations continuing and profit reaping after it reached its highest level two weeks earlier in the trading.
EURUSD continues to decline
The pair EURUSD traded at $ 1.1871, down by 0.2% from today’s opening session at $ 1.1890, and by the end of last Friday’s trading, the euro lost more than 0.1% with corrections activity and profit-taking after hitting its highest level in two weeks at $ 1.1927.
The single currency recorded its first weekly rise with the end of last week’s transactions with gains of about 1.2% and is the largest since the end of last November.
These broad gains come in light of the weakness of the US dollar against most major currencies, in addition to the decline in the yields of US Treasury bonds for ten years.
The negative pressure on the euro was added to the weakening of the French industrial numbers, as the country’s industrial production fell by 4.2% in February after rising by 3.2% in January, in Spain production fell by 2.1%, in general analysts expect that the European economy will experience a slower recovery due to the slowdown.
Stronger US bond yields also contributed to the weakening of the euro, with the yield on 10-year notes rising to 1.66% while the 30-year yield climbing to 2.33%. The strong yields in the US are a sign that forex investors are expecting the economy to recover faster.
The US dollar continues to achieve its gains
The US dollar gained against many global currencies during trading on Monday, registering its second consecutive daily gain, retracing from its lowest level in two weeks, driven by comments from Federal Reserve Chairman Jerome Powell.
The dollar index traded at 92.24 points, up by 0.1%, after falling below 92 points, the lowest in two weeks.
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.