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EURUSD is flying higher, reaching its highest level in two weeks
EURUSD achieved a rise on the morning of trading today, in the European market, and recorded a third consecutive daily gain and its highest level in two weeks. These gains come with an improvement in the risk appetite of investors and their appetite for buying high-risk currencies in exchange for selling The US dollar, in addition to declining US Treasury yields.
EURUSD traded at $ 1.1889, the highest since March 23, achieving a gain of more than 0.1%, from today’s opening session at $ 1.1875, and the single currency closed yesterday’s transactions with gains of 0.5% against the US dollar.
EURUSD continues to rise ahead of the Reserve Bank meeting minutes
The US dollar continues to record its losses against a group of major currencies for the third day in a row, reaching its lowest level in two weeks, following the decline in US Treasury bond yields due to the increased likelihood that the Federal Reserve will tighten its monetary policy sooner than it pledged, especially with the recovery of the economy. The American side is faster than expected.
The dollar index traded at 92.246 points, the lowest since March 23, down by 0.15%, and the US dollar index made a strong rise during the first quarter of 2021 by 3.6%, the highest in three years, supported by growing speculation that the US economy will recover and the inflation rate faster than expected. Which may force the Federal Reserve to tighten its monetary policy and raise interest rates sooner than it pledged previously.
The 10-year US Treasury yields declined by 1.5% for the second day in a row, reaching their lowest level in two weeks at 1.631%, in contrast, the risk appetite improves in the financial markets as the US and European stock indices achieve record levels, the highest ever.
Later in the day, the Fed is expected to release the minutes of its last meeting, held on March 16-17, which will likely include bank officials’ future opinions on US monetary policy.
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.