EURUSD rose to its highest level in two weeks

Mohammed Abdelkhalik
April 6, 2021

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EURUSD Forecast – 7th April 2021

EURUSD continued to achieve gains in the morning of CFD trading on Tuesday in the European market, and recorded its second consecutive daily gain, reaching its highest level in two weeks.

These gains come with an improvement in the risk appetite of investors and avoiding them to buy the US currency, in addition to a decrease in US Treasury yields.

EURUSD traded at $ 1.1821, its highest level since March 25, rising by 0.1%, from today’s session opening level at $ 1.1812.

EURUSD chart - 6th April 2021

EURUSD is rising again

The single currency’s gains come despite weak unemployment data for the eurozone, as employment in the EU is working to avoid the bad affect of coronavirus pandemic, and according to reports from the eurozone, the unemployment rate stable at 8.3% in February. This performance is weaker. Relatively from the performance of similar countries, for example, data from the US on Friday from last week revealed that the unemployment rate fell to 6.0%, and in the UK the rate was at 5.0%.

This performance is mostly due to the fact that Europe is struggling to deal with the epidemic and launching the vaccine, in fact, countries such as Germany and France are still implementing some closures to contain the virus.

Moreover, the European Union was late in accepting the current vaccines, which led to a delay in their launch, while the United Kingdom vaccinated more than 47% of the total population, countries such as France, Italy, Spain, and Germany had vaccinated less than 15%, this means that the region has It takes longer to recover than other western countries.

The US dollar is declining as bond yields decline

The US dollar fell against a basket of major currencies during today’s trading, recording its second consecutive daily loss and its lowest level in two weeks. This comes in light of the improvement in the risk appetite of investors, in addition to the decline in the yields of US Treasury bonds.

The dollar index traded at 92.53, the lowest in two weeks, down by 0.1%, and the weakest turnaround came less than a week after it reached its highest level in nearly five months at 93.439, while the US Treasury yields for ten years declined by 1.3% to reach 1.683. %.

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.