EURUSD extends its gains for a third day as risk appetite improves
EUR/USD Daily Outlook: 16th November 2020 EURUSD opened trading today to record its third consecutive…
GBPUSD rose in forex trading on Tuesday, following the release of positive economic data, which is mostly better than analysts’ expectations.
Government data revealed that the change in unemployment benefits amounted to 73.7 thousand applications, while expectations indicated that the level of 99.5 thousand applications would be recorded.
The index of the average income of citizens in the United Kingdom decreased by 1% in the last month, which fell below expectations of a decrease of 1.3%.
As for the unemployment rate in Britain, it rose to 4.1%, compared to the previous reading of 3.9%.
This, and the British government and other countries in Europe fear a second wave of the Coronavirus, especially since there has not been talking yet about an effective and safe vaccine in the old continent.
According to ATFX, an UK regulated broker, GBPUSD by 22:02 GMT by 0.3% to 1.2889, and reached the highest level at 1.2926, while the lowest price was recorded at 1.2816.
The dollar stabilized positively during Tuesday’s trading, erasing its previous losses, as investors’ attention shifted towards the US central bank meeting.
Government data released today showed that US industrial production fell by 0.4% in August, while import prices rose by 0.9% during the same period.
Today, Tuesday, the Federal Reserve meeting begins to discuss the dimensions and developments of monetary policy and the conditions of the US economy in light of the Coronavirus crisis.
The meeting will continue until tomorrow, Wednesday, followed by a decision on interest rates, and expectations indicate that the central bank will keep interest rates near zero unchanged.
Later tomorrow, Central Bank President Jerome Powell will hold a press conference to comment on the interest rate decision and talk about his expectations and the Federal Reserve’s vision for the economy.
In terms of trading, the dollar index settled (against several major currencies) by 19:25 GMT at 93.06 points, and recorded the highest level at 93.1 points and the lowest level at 92.7 points.
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.
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