Euro surges to 27-month high, worrying the ECB

September 02, 2020 10:30

The EURUSD exchange rate surged to a 27-month high yesterday, finally breaking the key $1.20 level. However, traders in the Asia session lacked the momentum to keep driving the currency pair higher, forcing it to retreat back below the $1.20 level.

News from European Central Bank (ECB) member Philip Lane that the euro's level "does matter" for monetary policy caused traders to act more cautiously. With troubles plaguing the US dollar, the euro has become the favoured currency of hedge funds with speculators holding record long positions in euro futures.

Did you know that you can speculate on the price of EURUSD using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!

The ECB member's remark is the first time they have commented on the appreciation of its exchange rate. A high euro is a concern for the bank as it can weigh down the Eurozone economy being such a high exporting bloc. However, amid a US Federal Reserve who have ruled out interest rate rises for a few years at least and the upcoming US presidential election, the euro could remain attractive for some time.

How to trade EURUSD with Admiral Markets UK Ltd

If you are feeling bullish or bearish on the price of EURUSD you can speculate on its price direction using CFDs. To get started, follow these five simple steps:

  1. Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
  2. Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
  3. Type in EURUSD at the bottom of the Market Watch search box and then drag the symbol onto the chart.
  4. Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
  5. Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.

Source: Admiral Markets MetaTrader 5 Web, EURUSD, Weekly - Data range: March 23, 2014, to September 2, 2020, performed on September 2, 2020, at 7:04 am BST. Please note: Past performance is not a reliable indicator of future results.

Did you know that you can open a free demo trading account so you can test your trade ideas and theories regarding the price direction of thousands of markets in a virtual trading environment? Open your free account today by clicking on the banner below:


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