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.

Informațiile prezentate în acest document sunt pregătite de Mahmoud Alkudsi și nu au intenția de a constitui consultanță pentru investiții. Informațiile din acest document sunt furnizate drept o comunicare generală de marketing cu scop informativ și, ca atare, nu au fost pregătite în conformitate cu cerințele legale concepute pentru a promova cercetările independente în domeniul investițiilor și nu sunt supuse niciunei interdicții de abordare înainte de diseminarea cercetărilor de investiții. Nu au în vedere obiective specifice de investiții, situații financiare sau nevoi specifice ale vreunui destinatar.

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Key Way Investments Ltd nu influențează și nici nu are vreo contribuție la formularea informațiilor conținute de acest document. Conținutul acestui document este generic și nu ia în considerare circumstanțele personale ale fiecărui individ, experiența de investiții sau situația financiară actuală.

Prin urmare, Key Way Investments Ltd nu va accepta nicio responsabilitate pentru eventualele pierderi ale traderilor datorate utilizării sau conținutului informațiilor prezentate în acest document. Performanța din trecut nu este un indicator viabil pentru rezultate viitoare.