GBP/USD Tests Resistance Near 1.3700 Amid Rising Inflation in the UK
GBP/USD Outlook: 21st January 2021 United Kingdom – Consumer Price Index On Wednesday, at GMT…
EURUSD remained in decline with the opening of the session on Friday in the European market at the end of the week’s forex trading, continuing its losses for the second consecutive.
This decline came as a result of sales to reap profits after it achieved earlier this week The highest level in 33 months.
In addition, what has provided more support to the levels of the US dollar recently is the rise in long-term US bonds, especially after the release of the minutes of the Federal Reserve meeting, and after the US Congress approved the Democratic President-elect, Joe Biden, winning the US presidential elections to become the forty-sixth president in the country’s history.
At 09:45 GMT, EURUSD by 0.5% to trade around the level of 1.2213 per dollar, the lowest level since the 31st of last December, compared to the opening price at $ 1.2271, and early in the session, it recorded the highest price at 1.2272 per dollar.
EURUSD ended yesterday’s transactions down by 0.45%, in the first daily loss in the last four sessions. This decline came as a result of corrections and profit-taking after it achieved its highest levels since April 2018 at 1.2349 per dollar.
Regarding the trading of the US dollar index, the index rose on Friday by 0.3%, it’s third consecutive daily gain, with the continuation of recovery operations from the lowest level in nearly three years at 89.20 points recorded in earlier trading, reflecting the renewed purchases of the US currency against Most of the major and minor currencies.
The recent recovery in dollar levels came supported by the rise in US bond yields in the ten-year category above the 1% barrier for the first time since March 2020, after the release of the minutes of the last meeting of the Federal Reserve Board, “the US Central Bank,” in addition to the easing of political tensions in the United States.
The minutes of the last monetary policy meeting of the Federal Reserve, released on Wednesday, indicated that the US central bank will give a lot of notice before curtailing its program to buy bonds.
Political tensions have subsided in the United States, after the US Congress approved the victory of the Democratic candidate, “Joe Biden”, in the last presidential elections, after hours of congressional turmoil and a number of supporters of Republican President Donald Trump storming the Capitol Hall and exchanging fire with security forces A protest against President Biden’s victory in the elections.
On his side, US President “Donald Trump”, whose term will end on the twentieth of this month, said that there will be an orderly transfer of power after the congressional approval of Biden’s victory.
Other than that, we watched, on Wednesday, the victory of the two Democratic Party candidates, “Raphael Warnock” and “John Usoff”, in the run-off for the Senate in the US state of Georgia, for the Democrats to dominate the Congress with its two chambers of the House of Representatives and the Senate, which is expected to provide more additional fiscal stimulus in the country. To face the negative repercussions of the Coronavirus.
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.
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