The US dollar was on the back foot in Asia session trading as traders digest the collapse in US manufacturing and cautionary comments from Federal Reserve Chairman Jerome Powell. The euro was the biggest beneficiary with the EURUSD exchange rate surging to a new 31-month high.
Data from November showed that US manufacturing expanded at a much slower pace than expected while coming off its two-year high. While the gauge of factory activity came in at 57.5, the median estimate of Bloomberg economists was 58. Nonetheless, a reading above 50 does indicate growth.
US Federal Reserve Chairman Jerome Powell cautioned lawmakers in the US on the uncertainty and economic damage that still remains even with the coronavirus vaccine. The US dollar has been one of the weakest currencies in recent months with the US Dollar Index collapsing nearly 12% from its March highs.
Did you know that you can speculate on the direction 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!
How to trade EURUSD with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the price direction of EURUSD you can speculate on the direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in EURUSD and choose your instrument at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- 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: Jun 22, 2014, to Dec 2, 2020, performed on Dec 2, 2020, at 7:07 am GMT. Please note: Past performance is not a reliable indicator of future results.
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