FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews
43 348.81

Dollar weakness takes EURUSD to a new range

2 December 2020

The single currency rose sharply on Tuesday evening, taking EURUSD to 1,2080, new highs since April 2018, due to a difference in macroeconomic data. The sharp jump broke the established trading range and potentially opened the way for growth in the area of 1.2000-1.2500.

Germany data showed a 39K drop in unemployment during November after a 38K decline a month earlier. These figures are significantly better than the expected 9K average increase despite the second wave of coronavirus in Europe and a tighter lockdown in November.

Also, the final Manufacturing PMI came out at 53.8, better than the initial estimates (53.6), reflecting a continuation of a relatively strong recovery in business.

The US manufacturing PMI shows much better relative dynamics but did not meet expectations due to a sharp deterioration in the employment component of the index. The Manufacturing ISM fell from 59.3 to 57.5 in November, raising questions about the recovery of the labour market in the run-up to Friday’s employment report.

Comments from the top US financial officials contributed to the weakening of the dollar. Speaking to Congress, outgoing Finance Minister Mnuchin pointed to the need for more extensive new business incentives to enable small businesses to stay afloat until vaccines are widely used. Nominated Finance Minister Yellen calls for decisive action to prevent the economic “devastation” of the US. Fed Chairman Powell, for his part, also stressed the commitment to incentives against the backdrop of a dampening recovery and discussions of a support package from legislators currently stalled.

The euro was the hero yesterday, but this leadership is unlikely to please the ECB. They had previously noted with dissatisfaction the negative effects of the growth of the euro, which is damaging export potential and creating deflationary risks in the economy. Several observers are expecting measures to curb its growth as early as next week’s ECB meeting.

However, the ECB has seldom been strong enough to reverse the rise in the euro. More often than not, its actions have been very time-consuming. Besides, the Fed will have another week to December 16 to present its response to the economy.



Stock Futures Up Ahead Of Fed Meeting
Stock Futures Up Ahead Of Fed Meeting

Futures in the United States and Europe are trading higher today, as investors focus on China’s Evergrande whirlwind, which has even overshadowed the Federal...

22 Sep 2021

Gold's sudden glow in a falling market
Gold's sudden glow in a falling market

Gold's ability to resist the general downtrend speaks to investor confidence that global central bank policies will remain soft enough to avoid triggering a global downward asset sell-off spiral...

21 Sep 2021

Forex and Cryptocurrency Forecast for September 20-24, 2021
Forex and Cryptocurrency Forecast for September 20-24, 2021

The dollar continues to strengthen, and the EUR/USD pair moves south. Starting on Monday September 13 at 1.1810, it ends the five-day run at 1.1730. The movement...

20 Sep 2021

Gold and Silver looking into the abyss
Gold and Silver looking into the abyss

Strong US data revived bets on an imminent QE rollback from the Fed, supporting the dollar and causing bond yields to rise. The news triggered a more than 2% plunge in gold prices...

17 Sep 2021

Stocks pick up some bid after textbook SP 500 bounce
Stocks pick up some bid after textbook SP 500 bounce

European stock markets were modestly higher on Thursday after a rebound in the US and another dip for Asian equities overnight. Hong Kong down 1.7%...

16 Sep 2021

Stock Futures Trade Lower, Investors Worry About Fed Tapering
Stock Futures Trade Lower, Investors Worry About Fed Tapering

US and European futures are trading lower today, following a retracement in US indices. The Dow Jones Industrial Average fell nearly 290 points, wiping out gains...

15 Sep 2021

Editors' Picks

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.