EURUSD continues to decline for the second day in a row

Last Updated on September 8, 2021

EURUSD continues to decline on the morning of Tuesday’s trading in the European session, and it recorded the second consecutive daily loss, in light of the continuation of correction operations and taking profits from its highest level in three months recorded earlier in trading.

EURUSD declines again

EURUSD

The EURUSD pair traded at the level of $1.1859, losing about 0.1% from the opening level of today’s session at $1.1869, and it closed yesterday’s trading with a loss of about 0.1% against the US dollar, ending the series of daily gains that lasted about a week, with the activity of correction operations and profit-taking. After hitting a three-month high of $1.1909.

It is expected that the European economy will release later today a set of important economic data, which is the final reading of the GDP during the second quarter of this year, and data on confidence rates for the German and European economy will be announced during the month of September.

The US dollar is rising but there is still more pressure

The US dollar continued to achieve its gains against a basket of major currencies in the morning of Tuesday’s trading, recording the second consecutive daily rise within the process of rebounding from its lowest level in a month.

The dollar index traded at 92.38 points, up 0.2% from the opening level of today’s session at 92.20 points, after it gained 0.1% yesterday, rebounding from its lowest level in a month at 91.94 points.

The US dollar index came under heavy pressure after mixed non-farm payrolls data, as the index struggled on Friday when the Bureau of Labor Statistics (BLS) published August non-farm payrolls data, figures showed that the US labor market slowed significantly in August, as the economy added 235 thousand jobs in August, which is well below the previous month’s increase of more than 1.1 million, the data was also well below Wednesday’s estimate of more than 374 thousand.

However, other parts of the labor market were modestly strong, for example, the country’s unemployment rate fell from 5.4% in July to 5.2% in August, marking the lowest rate since the onset of the pandemic.

In addition, the figures revealed that wages rose at an annual rate of 4.3% in August after rising by 4.0% in the previous month.

These numbers, along with higher vacancy rates and lower initial jobless claims, show that the overall labor market remains strong even after the disappointing job data.

Professional Trader and Analyst, economist in Financial and Forex marketsince 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.
Mohammed Abdelkhalik

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