CFD News

EUR/USD weakens further below 0.9800 mark, lowest level since October 2002

Collection of the new swiss banknotes (issued in 2017)

A aggregate of elements drags EUR/USD to its lowest stage due to the fact that October 2002 on Friday.
Aggressive Fed fee hike bets and the risk-off impulse carry the USD to a sparkling 20-year high.
Disappointing PMIs from France and Germany gasoline recession fears and weigh on the euro.
The EUR/USD pair comes underneath some renewed promoting strain on Friday and drops to its lowest stage considering October 2002, round the 0.9765 location at some point of the early European session.

Following the preceding day’s risky charge swings, the US greenback regains robust effective traction and is considered dragging the EUR/USD pair. In fact, the USD Index, which measures the greenback’s overall performance in opposition to a basket of currencies, hits a new 20-year height and stays properly supported via a greater hawkish stance adopted by using the Fed.

It is well worth citing that the US central financial institution signalled on Wednesday that it will probably undertake extra aggressive fee will increase to cap inflation. This, alongside with the generic risk-off environment, provides extra help to the safe-haven greenback. The market sentiment stays fragile amid developing issues about a deeper world monetary downturn.

The euro, on the different hand, is compelled with the aid of the hazard of a similarly escalation in geopolitical tensions, particularly after Russian President Vladimir Putin announced a partial army mobilization. Apart from this, the strength disaster in Europe, which should drag the region’s financial system deeper into recession, is additionally considered weighing on the shared currency.

The market fears have been similarly fueled by means of the launch of worse-than-expected flash Manufacturing PMI prints from France and Germany – the Eurozone’s two biggest economies. Furthermore, Friday’s downfall may want to additionally be attributed to some technical promoting under the 0.9800 round-figure mark, which would possibly have already set the stage for similarly losses.

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