EUR/USD Price May Rally to a Two and Half-years High

EUR/USD Price May Rally to a Two and Half-years High

A Record Month

In November, Global stock markets significantly rose caused by a better 2021 economic outlook driven by the coronavirus vaccines from three pharmaceutical companies. Additionally, the high liquidity available in the market injected from central banks through their quantitative easing programs combined with the US political clarity have accelerated the upward trend.

Cyclical stocks led the rally and the Dow Jones Industrial Average traded above 30000 last week in a major break-through hitting an all-time high. However, there still fears from delays in vaccine distribution or people's refusal of the vaccine as it will allow the virus to spread further and hinder the economic recovery.

Stock Market

Change %

S&P 500

+0.2%

Dow Jones

+0.1%

NASDQ

+0.9%

Japan 225

-0.8%

DAX 30

+0.3%

FTSI 100

+0.07%

CAC 40

+0.5%

EUR/USD and Main FX Markets

The US dollar index broke below the September 1 low at 91.71 and traded lower eyeing a test of 89.45. A close below 91.71 will change the market outlook from neutral to negative.

The EUR/USD benefited from a weaker US Dollar and opened this week’s trading session with an upward gap at 1.1971 and edged higher eying a test of the September 1 high at 1.2010. The market outlook remains positive while above 1.1909

The GBP/USD traders continue to follow the EU-UK talks updates while the time window becomes even narrower. On the other hand, the UK economy (services sector) is getting ready to reopen after a short lockdown imposed to contain the coronavirus spread. High street retail businesses have been given the choice to keep their shops open 24/7 in the Christmas session in an attempt to recover some of their heavy losses caused by the recent lockdown/s. The pair outlook remains positive while above 1.3185.

Gold and Oil

The Oil price Oil retreated after an OPEC+ agreement to postpone an output increase planned for January remained unclear before Monday’s meeting. The Brent Crude technical outlook remains positive while above $46.47, a close below that level will change it to neutral.

The Gold closed on Friday below $1,796 and slipped to a lower trading zone a close below $1,747 could send the price even lower towards $1,689.

Looking Ahead

On the economic calendar, investors await the German inflation rates of November due at 1:00 PM GMT, the Canadian Building permits of October at 1:30 PM GMT, and the US pending home sales of October at 3:00 PM GMT.

Le informazioni contenute nel presente documento sono redatte da Mahmoud Alkudsi e non costituiscono né devono essere interpretate come suggerimenti di investimento. Le informazioni di cui al presente documento costituiscono comunicazioni di marketing generali a scopo informativo e, in quanto tali, non sono state preparate nel rispetto dei requisiti di legge che promuovono le ricerche di investimento indipendenti. Inoltre, non sono soggette ad alcuna limitazione sulle transazioni condotte in anticipo rispetto alla divulgazione delle ricerche di investimento in questione.

Gli utenti / lettori non dovrebbero fare affidamento esclusivamente sulle informazioni qui presentate e dovrebbero fare le proprie ricerche / analisi anche leggendo la ricerca reale sottostante.

Key Way Investments Ltd non influenza né ha alcun input nella formulazione delle informazioni qui contenute. Il contenuto è generico e non tiene conto di circostanze personali individuali, esperienza di investimento o situazione finanziaria attuale.

Pertanto, Key Way Investments Ltd non accetta alcuna responsabilità per eventuali perdite di trader a causa dell'uso e del contenuto delle informazioni presentate nel presente documento. Le performance passate non sono un indicatore affidabile dei risultati futuri.