EURUSD falls to its lowest level in two weeks
EURUSD Forecast – March 4th 2021
EURUSD witnessed a decline in the morning of trading today, Tuesday, in the European session, heading towards recording the first daily decline, as it reached its lowest level in two weeks, these losses come in light of the weak risk appetite of investors and their focus on buying the US dollar as the best forex investment alternative for now, in the wake of a surge in US 10-year Treasury yields.
The EURUSD pair traded at $ 1.998, the lowest in two weeks, down by more than 0.5% from today’s opening session at $ 1.2064.
At the close of trading on Monday, EURUSD achieved a rise by about 0.4%, in light of the high-risk appetite of investors and their appetite for buying high-risk currencies, in addition to the decline in US Treasury bonds yields in light of the weak data issued by the performance of the manufacturing sector of the states United.
Today’s 10-year US Treasury yields witnessed an increase, exceeding 1%, rebounding from its lowest level in a week recorded yesterday, following the release of weak US data, which reduced investors’ risk appetite.
EURUSD declines on the focus of the economic data
The US dollar achieved a rise against a basket of major currencies, recording its highest level in two weeks, as the focus is on buying the US currency as the best safe and alternative investment, and the shrinking activity in the manufacturing sector in the United States made investors confused about the pace of the US economic recovery, which gave a boost to the US dollar.
The dollar index traded at 91.125 points, after rising by 0.22%, and reached its highest level in two weeks at 91.39 points.
Yesterday, the US Supply Institute released the Manufacturing PMI reading, which showed a decrease from the expected reading of 60.7 points in April.
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.