GBPUSD rose in early trading on Wednesday in the European market, recovering from its lowest…
EURUSD hit its highest level since the beginning of August
EURUSD continues to rise on Wednesday morning in the European market and recorded the fourth consecutive daily rise, to trade near its highest level since the beginning of August.
With the European Central Bank reducing its stimulus policy sooner than expected, trading is still limited today as investors await more economic data, especially the US labor sector data, which will give more clues about the timing of the Federal Reserve’s start to reduce its bond-buying program.
EURUSD rises due to corrections
The EURUSD pair traded at the level of $1.1817, adding about 0.1% from the opening level of today’s session at $1.1808, and the single currency closed yesterday’s trading with gains of about 0.1% against the US dollar for the third consecutive day, recording its highest level since the beginning of August at 1.1845 Dollars, due to strong data on European inflation rates, which jumped to their highest level since November 2011, which raises expectations that the European Central Bank will tighten its monetary policy sooner than expected.
The US dollar is falling again
The US dollar fell against a basket of major currencies in the morning trading on Wednesday in the European market, trading near its lowest level in three weeks.
The dollar index traded at 92.62 points, losing about 0.1% from the opening level of today’s session at 92.67 points.
The US dollar fell sharply after the relatively pessimistic statement made by “Jerome Powell” at the Jackson Hole virtual seminar, where Powell indicated that the Federal Reserve will slow the giant asset purchase program of $120 billion per month, and his statement was in line with what he said Other Fed officials such as Rafael Bostick and Esther George in the past few weeks are also in line with the minutes of the recent FOMC meeting.
Powell indicated that the tapering off of asset purchases will end later this year as long as the US economy remains flat, and recent economic numbers have given indications that the economy is doing well.
For example, Data published last week showed that the country’s existing and new home sales numbers rose in July, which was further evidence that the country’s housing market remains flat.
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.