USD index jumps to its highest level in two months ahead of US durable goods data

Last Updated on September 25, 2020

The USD index jumped in the European market on Friday to its highest level in two months against a basket of global currencies, to resume its gains that were temporarily stopped yesterday within breathtaking operations, on the verge of achieving the largest weekly gain in six months, thanks to the purchases of the US currency as the best alternative investment, in addition to operations Securing the safety of the dollar’s liquidity in light of the sharp downturn that dominates most global stock markets, this comes before the US durable goods orders data.

The USD index rose more than 0.3% to 94.62 points, the highest since July 24, and the opening level of trading today is at 94.32 points, and the lowest level is at 94.19 points.

The USD index ended yesterday’s trading, down by 0.1%, in the first loss in the last five days, within breathtaking operations, and after negative data on jobless claims in the United States.

USD index

At the level of all trading this week, the US dollar index has so far achieved more than 1.7%, in the process of achieving its third weekly gain within a month, and the largest weekly gain since last March.

USD index rose after buying waves

This gain, the largest week in six months, is attributed to the intensification of purchases of the US currency as the best alternative investment, in light of mounting concerns about the global economy, following the rise in cases of Coronavirus in Europe and the United States, and the announcement of some governments to tighten some restrictions to prevent the spread of the disease.

Because of these developments, most of the global stock markets are dominated by a sharp downturn, which renewed fears once again about the US dollar’s liquidity shortage.

Later today, investors awaited important data from the United States, on durable goods orders, one of the most important indicators for measuring the levels of investment spending in the country, and investment spending represent more than 16% of the value of GDP.

Released by 12:30 GMT, durable goods orders are expected to rise 1.1% in August from an 11.4% rise in July, excluding transportation items expected to rise by 1.0% from a 2.6% rise the previous month.

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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