EUR/USD falls for first time in 3 days

Euro fell in the European market on Tuesday against a basket of global currencies, and heads to the first loss in three days against the US dollar, as the dollar resumed its rally against most major and minor currencies, in addition to concerns over the European economy entering a long recession, which may force the European Central Bank to get back to the era of monetary stimulus and bond buying.

As of 07:15 GMT, EUR/USD fell 0.01% to $1.1244, compared with the opening at $1.1256, after reaching a low of $1.1241, and a high of $1.1260.

Yesterday, Euro gained 0.1% against the dollar, on its second consecutive daily gain, as it rebound continued from a one-week low of $1.1226.

While the Euro lost 0.5% against the dollar over last week, in its fourth weekly loss in the last five weeks, due to weak data on the industrial activities in Europe and Germany.

The data showed a continued stagnation of the manufacturing sector in Europe and Germany during April, confirming the continued sharp decline of the European economy at the beginning of the second quarter of this year.

The dollar index rose 0.1% on Tuesday, resuming the gains which were suspended yesterday as part of a correction from the highest level in five weeks, reflecting the rise of the US dollar against a basket of major and minor currencies.

The rise in dollar levels is supported by the 10-year US Treasury yields, as well as positive US data, confirming the strength of the growth path of the world's largest economy in the first quarter of this year, in contrary to experts' expectations.

On the other hand, as the signs of sharp economic decline in Europe are increasing, the ECB may again turn to the era of monetary stimulus and bond buying in the upcoming period.