EURUSD Weekly Outlook: 12th October 2020 USD rose in the European market on Monday against…
EURUSD is consolidating above its lowest level in a week
EURUSD rose on Monday to consolidate above lowest level in a week, recorded earlier in Friday’s trading.
EURUSD rose by more than 0.2% to $ 1.1817, and opening price of the day was at $ 1.1791, and the lowest level was at $ 1.1784.
EURUSD ended Friday’s trading, down 0.6%, in its second loss in last three days, and reached its lowest level in a week at $ 1.1754, after strong economic data in United States.
In terms of trading last week, the single European currency “euro” lost 0.4% against US currency, in the first weekly loss since mid-June, due to the recovery of US dollar levels.
This stoppage comes, in light of the low yield on US Treasury bonds for ten years, along with renewed purchases of high-risk currencies, amid hopes of reaching a treatment for Coronavirus, especially after US Drug Authority approved use of blood plasma for people recovering from Covid-19 disease as a treatment option.
EURUSD under pressure of US data
USD index fell by 0.4% to the level of 92.84 points, and the opening level of trading today was at 93.20 points, and the highest level was recorded at 93.26 points.
The index ended Friday’s trading, up 0.5%, second gain in last three days, and reached its highest level in a week at 93.47 points, after strong data in United States.
The data showed that growth of the manufacturing and services sectors expanded during August, far exceeding average expectations of experts, which boosted hopes for a quick recovery of US economy from Coronavirus crisis.
In terms of trading last week, USD index rose by more than 0.1%, registering the first weekly gain since mid-June, thanks to recovery of USD levels against a basket of major and minor currencies.
Apart from selling to reap profits, USD levels fell on Monday in the beginning of the week’s trading, due to improved risk appetite among investors, focusing on buying high risk currencies.
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.