- The dollar gains momentum and rises on all fronts.
- EUR/USD continues to approach parity, looks vulnerable.
- European stock markets and Wall Street futures in the red.
EUR/USD extended the decline below 1.0100 and posted fresh five-week lows at 1.0051 on renewed dollar strength. The pair remains under pressure, in the low zone, getting closer to parity again.
The dollar up
The dollar is up on all fronts on Friday, helped by lower equity markets and higher Treasury yields. The DXY it is approaching 108.00, and it is at a one-month high.
In front of its neighbors, the euro presents mixed results. EUR/CHF is nearing record lows, and is trading near 0.9600. For its part, the EUR/GBP is at its highest in almost three weeks, in the area of ​​0.8500.
Both the officials of the European Central Bank like those of the Federal Reserve, in recent comments have pointed out that interest rates will continue to rise. This despite the economic context, slowdown in the economy.
The latest data from the US reinforces the position of increases in the rate, which reactivated the strength of the dollar after the correction of the previous weeks. The weekly drop in EUR/USD is already over 200 pips and the weekly close is on track to be the lowest since November 2002.
Where most analysts are pointing is at the parity level and below. The risk for this position is an improvement in the mood of the markets and a sharp drop in inflation, something that at the moment most investors do not see in the short term.
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.
