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EURUSD extends losses to hit its lowest level in a month
EURUSD expanded its losses at the beginning of the week’s trading to deep its daily losses for the seventh consecutive day, reaching its lowest level in a month. The demand to buy the US dollar is increasing as the best alternative investment, especially after the data released by the US Department of Labor which showed the strength of the market, which increased expectations that the Federal Reserve will tighten its monetary policy soon.
EURUSD tests the support level
The EURUSD pair traded at $1.1742, down by 0.15% from the opening level of today’s session at $1.1758.
The euro closed Friday’s trading, losing about 0.6% against the US dollar for the sixth consecutive day, recording the largest daily decline since mid-July, after the US economy released the US jobs report for the month of July.
Last week, the single currency recorded the third consecutive weekly decline, with losses estimated at 0.9%, with the increasing demand for buying the US dollar as the best alternative investment.
The US dollar rises, supported by employment data
The US dollar rose against most of the major currencies on Monday morning in the European market, reaching its highest level in two weeks, as investors increased their appetite for buying the US currency following strong labor market data, which increased the bets of the Reserve Bank’s tightening of its monetary policy.
The dollar index traded at 92.92 points, the highest in two weeks, up by 0.1%.
On Friday, the US Department of Labor revealed the monthly non-farm payrolls report for July, which showed the addition of about 943,000 jobs, higher than the expected 870,000, which raised expectations that the Reserve Bank will reduce its stimulus program during this year, to be followed by a raise interest rates by 2022.
As a result, US 10-year Treasury yields jumped by 8 basis points last Friday, hitting a two-week high of 1.3053%.
It is worth noting that Federal Reserve Chairman Jerome Powell said earlier that the labor market data is the criterion that will build on the bank’s performance of the economy.
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.