EURUSD continues to recover from its lowest level in two weeks

Mohammed Abdelkhalik
October 19, 2020

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EURUSD Weekly Outlook: 19th October 2020

EURUSD rose in the European market on Monday against a basket of global currencies, to continue its recovery for the second day in a row from its lowest level in two weeks against the US dollar, thanks to strong data from the Chinese economy, which boosted the risk appetite of ATFX investors and focus on buying high-risk currencies.

EURUSD rose by nearly 0.2% to $ 1.1737, and the opening price of the day was $ 1.1716, and the lowest level was $ 1.1703.

On Friday, EURUSD achieved a gain of 0.1%, as part of recovery operations from its lowest level in two weeks at $ 1.1688 recorded the previous day.

EURUSD Forecast - Monthly Chart - 19th October 2020

EURUSD Forecast – Monthly Chart – 19th October 2020

In terms of last week’s transactions, the single European currency lost nearly one percent against the US currency, in its first weekly loss within the last three weeks, due to investors ’appetite for buying the US dollar as the best alternative investment.

EURUSD rose after fiscal stimulus news in The USA

This is with the fading of hopes of approving a new fiscal stimulus in the United States before the presidential elections early next month, in addition to the acceleration of the spread of the second wave of the Coronavirus in Europe and the United Kingdom.

The dollar index fell on Monday by more than 0.2%, extending its losses for the second day in a row, reflecting the continued decline in levels of the greenback against a basket of major and minor currencies.

This decline comes in light of the strong sentiment dominating investors, following the Chinese data, and the focus on buying high-risk currencies.

The data showed that the Chinese economy grew at a rate of 4.9% during the third quarter of this year, compared to a growth rate of 3.2% in the second quarter, to ensure that the second-largest economy in the world is still on the road to a rapid recovery from the damage caused by the Coronavirus pandemic.

The data also showed that Chinese industrial production rose 6.9% in September from a 5.6% rise in August, exceeding experts’ expectations, a 5.8% raise, and retail sales jumped 3.3% in September from a 0.5% rise the previous month. Experts’ expectations also beat a 1.7% rise.

Author Mohammed Abdelkhalik

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.