GBPUSD records its highest in two and a half months
November 23, 2020
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GBPUSD Weekly Outlook: 23rd November 2020 GBPUSD expanded its gains to record the second daily…
EURUSD continues to rise, hitting its highest level in two months
EURUSD continues to perform positively on Friday morning in the European market to reach its highest level in two months. With the US dollar continuing to decline against most major and minor currencies affected by the decline in long-term US Treasury yields, European Central Bank President Christine Lagarde is expected to make several statements later today.
EURUSD continues to rise
The EURUSD pair traded at $1.1482, the highest in two months, rising by 0.25% from the opening level of today’s session at $1.1455, and at the end of yesterday’s trading, the single currency added gains against the US currency by 0.1% for the third consecutive day, in light of the weakness Continuous US dollar.
The single currency is heading towards recording the largest weekly rise against the dollar since last May, at the end of trading today, with gains that may amount to about 1.1%.
Lagarde earlier emphasized the increase in consumer prices while emphasizing the European Central Bank’s commitment to price stability and the currency’s credibility.
On the data front, German GDP expanded 2.7% in 2021, in line with estimates, while France’s annual inflation rate held steady at 2.8% y/y in December 2021, unchanged from a 13-year high in November.
The US dollar continues to suffer losses
The US dollar witnessed a decline against a basket of major currencies in the morning trading on Friday, recording the fourth consecutive daily loss and the lowest level since last November, and the dollar is heading towards incurring the largest weekly loss since the beginning of May 2021, due to the decline in US Treasury bond yields.
The dollar index traded at 94.62 points, the lowest since November 11, 2021, losing about 0.3% from the opening level of today’s session at 94.87 points, and the index is heading towards recording the largest weekly decline since May 2021, with losses that may amount to about 1.2%.
Long-term US Treasury yields fell to 1.7%, after hitting a two-year high of 1.808% in early trading this week.
Three FOMC members (Lyle Brainard, Patrick Harker, and Charles Evans) gave hawkish signals yesterday in their comments, calling for a rate hike this year, and Vice-Chairman Brainard said rates could rise as soon as March.
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.