Gold prices fell during trading today in the European market, to continue their losses for…
GBPUSD fell to its lowest level in a month due to the dollar strength
GBPUSD extended its losses in the European market and recorded the second consecutive daily loss and its lowest level in a month, and the pound is heading towards recording the third consecutive weekly decline.
These extended losses come with investors’ reluctance to buy high-risk currencies and their desire to buy the US dollar as the best safe and alternative investment in light of the escalating fears of increasing daily infections with the Coronavirus, in addition to the weak economic data issued by the British economy, which was represented in An unexpected big drop in retail sales for the month of July.
GBPUSD continues to decline
The GBPUSD traded at $1.3609, the lowest since the end of last July, down more than 0.2% from today’s opening level of $1.3637.
The British Pound closed its trading yesterday to lose about 0.85% against the US Dollar, recording the largest daily decline since mid-June, due to the strength of the US Dollar against most of the major currencies following the strong data on weekly jobless claims in the US.
Since the beginning of this week’s trading so far, the British pound has lost about 1.8% against the US dollar, heading towards recording the third consecutive weekly decline, as it is the largest weekly decline since June.
The US dollar continues with a strong bullish trend
The US dollar continued its rally against most of the major currencies on Friday morning, with the return of risk-off sentiment and after the release of the relatively hawkish Federal Open Market Committee minutes on Wednesday, the index rose to 93.45 points, the highest level since November.
The dollar index has been on a relatively strong uptrend in the past few weeks, as the number of COVID-19 cases jumped globally, the uptrend accelerated this week after New Zealand moved to Level 4 of the close.
The announcement from New Zealand sent shockwaves around the world because the country has not recorded any cases in the past six months, the country has also been in lockdown, with most of its borders closed.
The US dollar index also rose after the Federal Reserve issued the minutes of the last meeting, at this meeting the members decided to leave interest rates unchanged at zero levels and maintain the asset purchase program.
The minutes showed that more FOMC members started talking about diminishing asset purchases, the only caveat being that the tapering should only happen if data from the US economy continued to strengthen.
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.