Oil prices hit the lowest level in 3 months after the USD rising
Oil prices continued their decline with the opening of the trading session today to continue…
EURUSD achieved a limited rise on the morning of trading today, in the European session, retreating from its lowest level in nearly five months. The European economy releases important data on inflation rates during the month of March. Positive data will support the euro and reduce pressure on it.
EURUSD traded at the level of $ 1.1747, up by 0.3%, to rebound from its lowest level in about five months at $ 1.1704, which is recorded during the Asian market trading, and it suffered losses yesterday by 0.4% in light of the continued reluctance of investors to risk in the markets and their focus To buy the US dollar as the best safe and alternative investment.
The euro is on the right track for its third consecutive monthly decline as the US dollar returns to an impressive gain, and the euro is trading at $ 1.1747 which is 5% lower than the highest point this year.
The single currency declined for several reasons, perhaps the most notable of which is that the US dollar has recovered impressively from its lowest level in 2020, and the dollar index, which weighs the greenback against a group of peers, has rebounded by more than 3% this year.
The dollar strengthened due to the continued recovery of the US economy, supported by the US government’s approval of a stimulus package worth more than $ 2.8 trillion this year, and the Federal Reserve Bank printed more than $ 360 billion through its open program of quantitative easing.
Moreover, media sources say that the Biden administration is proposing another infrastructure package worth $ 3 trillion that, in theory, all of these measures should push the US dollar lower.
However, generous spending would theoretically lead to higher inflation, which in turn would lead to higher interest rates. While the Fed opposed a rate hike, analysts believe the bank will either raise or turn into a hawkish stance later this year. The hawkish Federal Reserve would be better for the US dollar.
The euro has also fallen due to the disagreement between the United States and the European Union over vaccinations, in the past few months the US government has vaccinated millions of people and the Biden administration hopes that the country will reopen completely in the summer.
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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