- EUR/USD witnesses strong selling on Thursday and falls to a new multi-year low.
- Expectations of an aggressive Fed rate hike and risk aversion continue to benefit the USD.
- Concerns about the economic fallout from the Ukraine crisis weigh on the euro.
The pair EUR/USD has broken out of its one-week trading range and has fallen below 1.0450 to its lowest level since January 2017 during the first part of the European session on Thursday. At time of writing the pair is trading at 1.0463, down -0.48% on the day, after making a low at 1.0443.
Despite signs that inflationary pressures in the world’s largest economy are peaking, markets seem convinced that the Fed will tighten its monetary policy at a faster pace. This, in turn, continued to act as a tailwind for the US dollar and put downward pressure on the EUR/USD pair.
In addition, the prevailing risk aversion, represented by a prolonged sell-off in stock markets, has further benefited the safe-haven dollar.
On the other hand, the common currency has been further hampered by the concern that the European economy is the most affected by the crisis in Ukraine.
EUR/USD technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
