Euro on track for largest weekly profit in three months

EUR/USD rose on Friday after a hiatus from gains yesterday, on track for the largest weekly profit in three on hopes for US Covid relief. 

 

EUR/USD rose 0.25% to 1.1846. after closing up 0.3% yesterday, the first loss in five days on profit-taking. 

 

Across the week, the euro is up 1.1% so far on track for the largest weekly profit since July. 

 

The gains came amid improving sentiment in the market with hopes increasing for US relief package before the November elections.

 

On the Covid front, the World Health Organization reported 41.1 million global cases so far of the coronavirus, with the death toll standing at 1.128 million.


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Posted By laraparker : 23 October, 2020
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The US dollar rose on Wednesday, to head for its first gain in 3 days, thanks to renewed demand for the US currency as the best alternative investment, ahead of an important debate about the new fiscal stimulus in the US, in addition to important US data on the private sector jobs in September, and the GDP reading for the second quarter.   The dollar index rose over 0.3% to 94.18 points, after it opened at 93.85 points, and hit an intraday low of 93.79 points.   The index lost 0.4% yesterday, posting its second straight daily loss, on profit-taking from a 2-month high of 94.74 points.   Demand for the US dollar was renewed, ahead of the start of the upcoming negotiations between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin on Wednesday to discuss the new $2.2 trillion coronavirus relief bill.   The US dollar has gained around 2% so far during September, to head for its first monthly gain in 5, due to fears over the global economy, after Covid-19 cases spiked in Europe and the US.   Investors are anticipating at 12:30 GMT, the release of the ADP Non-Farm Employment Change reading, with forecasts to rise to 0.650 million in September, from 0.428 million in August.   At 12:30 GMT, the final reading of the US GDP for the second quarter of 2020 will also be released, with forecasts for a contraction by 31.7% on par with the flash reading, vs. contraction of 5.0% during the first quarter.

US consumer sentiment improved in October despite constant concerns over the coronavirus pandemic.    The University of Michigan's consumer sentiment survey improved to 81.2 this month, the highest since March, while analysts expected a dip to 80.2.

The US dollar rose on Wednesday, to extend gains for the second day, as recovery attempts from a 3-week low continued, thanks to demand for the US currency as the best alternative investment, ahead of the US producer price data for September.   The dollar index rose 0.15% to 93.67 points, after it opened at 93.54 points, and hit an intraday low of 93.43 points.   The index gained 0.5% yesterday, posting its first gain in 5 days, and rebounded from a 3-week low of 93.01 points.   Investors focused on the greenback as the best alternative investment, after hopes about the new US aid package diminished, amid doubts the Republican and Democratic parties would reach a compromise.   Additionally, Johnson & Johnson announced yesterday pausing its COVID-19 vaccine candidate clinical trials after an unexplained illness in one of the volunteers.   Investors are anticipating key economic data releases today on the US producer price index for September, which delivers insight on the US inflation levels.   The monthly producer price index reading will be released at 12:30 GMT, with forecasts for a rise by 0.2% in September vs. 0.3% in August, and the core reading for the same index (excluding food and fuel prices) is expected to rise by 0.2% vs. 0.4%.


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