EURUSD hits one-month high, boosted by Powell’s comments

Last Updated on August 30, 2021

EURUSD witnessed a rise at the beginning of the week’s trading in the European market, and it recorded the second consecutive daily rise, reaching its highest level in a month.

This support comes from the statements of Federal Reserve Chairman Jerome Powell during the Jackson Hole Forum, where he indicated Powell the possibility of starting the bank to reduce its stimulus program, despite that, he stressed not to rush in the timetable for raising interest rates.

EURUSD is recovering again

EURUSD

The EURUSD traded at $1.1809, the highest in nearly a month, up by 0.15% from the opening level of today’s session at $1.1793, and the euro closed trading on Friday, gaining about 0.4% in the first daily rise, in light of the improvement in risk appetite.

Over the course of last week’s trading, the single currency recorded the second consecutive weekly rise against the US dollar, with gains estimated at 0.8% against the US dollar, with continued rebounds from its nine-month low of 1.1664, which is recorded earlier in trading.

The US dollar is falling after Powell’s pessimistic speech

The US dollar fell against a basket of major currencies on Monday morning, following comments from Federal Reserve Chairman Jerome Powell during the Jackson Hole conference on Friday.

The dollar index traded at 92.640 points, losing about 0.06% from the opening level of today’s session.

Federal Reserve Chairman Jerome Powell said Friday that the bank is likely to begin reducing its bond-buying program later this year, but stressed not to rush into setting a timetable for raising interest rates. It has to do with the timing of the interest rate hike.

It seems that Powell’s comments and his assurances not to confuse the timing of the bond-buying program and the timetable for raising interest rates indicate the ambiguity about the timing of the tapering and that there is likely to be a gap.

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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