EURUSD deepens its losses in 5 weeks before the US elections
November 2, 2020
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EURUSD fell in the European market on Monday to deepen its losses for the sixth…
EURUSD extends its losses to hit its lowest level in a month
EURUSD opened Monday’s trading session in the European market with a decline, recording the third consecutive daily loss and its lowest level in a month. This comes in light of the reluctance of investors to buy high-risk currencies and their continued purchase of the US dollar as the best investment at the present time. This is in addition to growing fears of a contradiction between the monetary policies of the major central banks in the United States and Europe.
EURUSD hits the lowest level in a month
The EURUSD pair traded against the US dollar at $1.1706, the lowest in a month, losing about 0.2% from the opening level of today’s session at $1.1730, and at the end of trading last Friday, the euro lost about 0.3% against the US dollar for the second day in a row, with expectations increasing The Federal Reserve will tighten monetary policy at its next meeting this week.
Over the course of last week’s trading, the single currency recorded losses against the US dollar by about 0.75%, with the growing fears of a clear contradiction between the monetary policies of the major global central banks in the United States and Europe, especially after the European Central Bank emphasized the continuation of its current expansionary policy without any adjustments. Until the end of the first quarter of next year at least, on the other hand, expectations are increasing that the Reserve Bank is heading towards tightening its stimulus policy.
The US dollar hits its highest level since August 20
The US dollar rose against most of the major currencies in the morning trading on Monday in the European market, recording the third consecutive daily gain and its highest level since August 20, with the increasing demand for buying the US currency as the best investment, in addition to the increasing expectations that the Reserve Bank is heading towards reducing His stimulus program, and the markets are awaiting with interest the Reserve Bank meeting to be held this week, which will include clear clues about the future of monetary policy.
The dollar index traded at 93.45 points, the highest in a month, adding more than 0.2% from the opening level of today’s session at 93.24 points. sequentially with a gain of 0.7%, led by the strong data on US retail sales for the month of August.
Markets are awaiting the Federal Reserve’s monetary policy decisions at its regular meeting later this week, which is sure to include plenty of clues about when the bank will begin to scale back its stimulus program.
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.
