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EURUSD fell to its lowest level in 15 months
EURUSD expanded its losses on Wednesday morning in the European market and recorded the second consecutive daily decline, reaching its lowest level in 15 months. These big losses come in light of the strength of the US dollar and the increasing demand of investors to buy it as the best investment Alternatively, this coupled with the sudden rise in long-term US Treasury yields, also added pressure on the single currency weak data from the German economy, the largest economy of the Eurozone.
EURUSD continues to decline
The EURUSD pair traded at the level of $1.1553, the lowest since July 2020, losing about 0.4% from the opening level of today’s session at $1.1598. The single currency closed yesterday’s trading, down by 0.2% against the US currency in the first daily decline, with renewed demand to buy US dollars.
The German economy announced disappointing data, as it revealed that factory orders fell during August by 7.7%, recording the lowest level since April 2020, while factory orders recorded in the previous reading for the month of July, an increase of 4.9%, which raised concerns about the growth of the German economy. The largest economy of the Eurozone.
The US dollar rises to trade near its highest level in a year
The US dollar witnessed a rise against a basket of major currencies in the morning trading on Wednesday in the European market, recording its highest level in almost a year. Years driven by rising expectations that the Federal Reserve is imminent to reduce its monetary policy.
The dollar index traded at 94.49 points, near its highest level in a year at 94.50 points, up today by 0.4%.
The US Treasury yields for ten years rose today by 2.75%, recording the third consecutive daily rise, as well as their highest level in four months at 1.573%, amid increasing expectations that the Federal Reserve will reduce its stimulus program during the month of November.
The financial markets are awaiting many important data during the next few days, starting today, as the private sector jobs will be announced for the month of September, and on Friday the non-agricultural sector jobs data will be announced for the same month.
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.