EUR is about to make its fourth consecutive weekly gain

EUR rose slightly in the European market on Friday against the USD , extending for the third day in a row, on the verge of achieving the fourth weekly gain in a row, among the longest series of weekly gains since late February, as the fears of deepening the gap between monetary policies in Europe and the United States , Especially as the ECB is re-evaluating the stimulus program for the economy. In contrast, the possibility of accelerating the tightening of US monetary policy is weakening, amid persistent weak levels of inflation in the country and doubts about the robustness of economic growth.

The EURUSD pair is trading at 7:35 GMT   at 1.1883 from the opening price of 1.1868 after recording the highest 1.1889 and the lowest at 1.1866.

Yesterday, the EUR gained 0.1 % against the USD, its second daily gain in a row, on positive data in Europe showing a rise in retail sales in June, versus disappointing data from the US services sector in July.

The EUR gained 3.7 % against the USD in July, its fifth monthly gain in a row, the longest monthly gain since August 2012 and the biggest monthly gain since March 2016.

Over the course of the week, the EUR has so far gained 1.1 % against the USD , about to record its fourth weekly gain in a row, among the longest weekly gain since late February.

The strong gains in the European currency during this period are due to several reasons, including the easing of concerns about deepening the gap between monetary policy between Europe and the United States, especially with the European Central Bank to reduce the monetary stimulus program in the next few months, , Amid continuing weak US inflation levels and doubts about the robustness of the growth path of the world’s largest economy.

One reason is the 10 years bond yield in most of Europe, as well as strong economic data from industrial and service activity in the euro zone, which recently recorded its highest level in nearly six years, as well as the recovery of inflation and its approach to the ECB’s targets.

With economic activity improving and inflationary pressures rising relatively, the ECB is likely to cut its bond buying program. ECB Governor Mario Draghi said at the July meeting that the bank would review the program by autumn.

Today, important economic data from Europe are absent from the global financial markets as attention is drawn to the United States, awaiting the publication of monthly job data in July, which is expected to provide new evidence on the strength of the US economic growth path and the possibility of raising interest rates for the time The third during this year

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