US Dollar Continues to Climb Whilst Euro Flounders
Yesterday, despite inflation being at its highest level in three decades, the US Commerce Department reported that retail sales rose 1.7% in October, providing the world’s largest economy with a strong start to the final quarter of 2021.
This is the third consecutive month US retail sales have increased and the latest figure significantly exceeded economists’ expectations of 1.4%.
The news helped push US equities higher - with the Dow Jones, S&P 500 and NASDAQ all rising during the session.
The increased optimism also thrust the US dollar higher, as it maintains its recent positive run, causing the US dollar index to end the day at its highest level since July 2020.
In contrast to the dollar, the euro continues to flounder as Europe struggles with rising Covid-19 cases, which have forced Austria, Germany and the Netherlands to reintroduce stricter measures in an attempt to curb infections.
As a result, the EURUSD continued its downward spiral, which has seen it fall 7.4% since the beginning of June, reaching a 16-month low in the process.
Taking all this into account, it would be of little surprise if the EURUSD continues to follow its downward momentum over the coming sessions. However, we will have to listen for any news which may affect the currency pair from European Central Bank President Christine Lagarde, who speaks later today.
With a Trade.MT5 account from Admirals, you can trade Contracts for Difference (CFDs) on EURUSD and over 40 other currency pairs! CFDs allow traders to attempt to profit from both rising and falling prices whilst also benefiting from the use of leverage. Click the banner below in order to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.