EURUSD extended its gains for the third day in a row

Last Updated on May 3, 2021

EURUSD Forecast – 20th April 2021

EURUSD continues to be strong in the morning of trading on Tuesday in the European market, and it recorded its third consecutive daily gain and its highest level in seven weeks. These gains come in light of the continued weakness in the US dollar against most major currencies, especially after The statements of several monetary policy officials at the Federal Reserve Bank that the bank will continue its stimulus policy for a period until it ensures full recovery of the US economy.

EURUSD continues to rise

The EURUSD pair opened at $ 1.2037, up by 0.35%, and is currently trading at $ 1.2079, the highest in seven weeks.

Some analysts say that the euro’s gains came after the European Union obtained an additional 100 million doses of coronavirus vaccines provided by Pfizer and Protech.

European Central Bank President Christine Lagarde said last week that the European economy is basically anchored in financial and monetary support from the central bank, and neither is likely to be abandoned until the European economy recovers.

EURUSD

The US dollar is falling near its lowest level in a month and a half

The US dollar fell against most of the major currencies in today’s morning trading, deepening its losses for the third day in a row and trading near its lowest level in a month and a half, in light of the improvement in the risk appetite of investors and their appetite for buying high-risk currencies and avoiding them to buy the US dollar as a safe haven.

The dollar index traded at 90.92 points, after dropping 0.1%, to trade near its lowest level since March 3 at 90.858 points.

Ten-year bond yields declined this week at 1.529%, the lowest in a month after they reached their peak on March 31 at 1.776%. This decline comes after the statements of many monetary policymakers that confirmed the bank’s continuation of its stimulus policy for a period, despite the strength of Economic data in the recent period, which included inflation and retail sales, and policymakers believe that the increase in data is temporary and does not indicate a full recovery of the US economy.

Professional Trader and Analyst, economist in Financial and Forex marketsince 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.
Mohammed Abdelkhalik

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