- EUR/USD Down on Monday, reaching its lowest level in about two years and melting with parity
- Fears that Russia could continue to be replaced by gas supplies in the European Union is one of the main bearish drivers for the euro.
- June US CPI data will steal the limelight this week. The report could act as a bullish stimulus for the US currency if the uptrend continues to rise.
Read More: Gold price forecast – Gold breaks key support, US gains in Deck
The Euro took fire from various quarters at the start of the week, hurting huge losses against the U.S. currency amid terror sentiment. and scope DXY strength. At noon, the EUR/USD depreciated 1.1% to 1.0069but before the day it had fallen as 1.3%. lohi 2002.
Some catalysts weighed on the normal currency on Monday, but the big bearish leader fears President Putin’s government will cut some measures to release energy to the European Union. PAO Gazprom for some time close to Nord Stream 1, the largest pipeline carrying Russian gas to Germany, for annual maintenance. While the flows are expected to resume in 10 days, investors believe the Kremlin could use the situation as a pretext to seize gas supplies to meet the sanctions imposed. by the West after the invasion of Ukraine.
If Nord Stream 1 stays out of service before the maintenance period that ends on July 21, natural costs will continue to rise. increase and perhaps more so than in the history of March, increasing the nature of inflation in Europe. This feature will work great gas problem on the ground, requiring officials to implement fuel segregation and, in the worst case, order short -term closures of factories to reduce head energy use in the winter, blocking the path because the depth can be reduced.
The threat of economic war is in the minds of every trader a sad the euro in the coming days and the people of the market may have a better idea of what Russia intends to do next. Developments could be made on the other side of the Atlantic, in the United States another to strengthen the bearish sentiment of the EUR / USD. June US CPI data, necessaryfor released ma Wednesday, yes intended to show increase ageana in the new circlehigh nearly 9% on the back of rising pump prices.
A red CPI would close the case for another 75 interest -bearing factors the FOMC meeting July or through September, as policymakers begin to work more with the ability to raise revenue. The monetary policy split between the Fed and the ECB, combined with serious risks to Eurozone growth, will ensure that the U.S. currency continues to lead the recession. FX area, a position that holds the EUR / USD around parity in the near term.
After the last slide of the EUR/USD, prices have fallen to several -year lows of nearly 1.0000. To see the major technology levels coming into the game, you need to look at month chart. even if There’s no right area of support nearby, parity can act as a floor, but if customers manage to break that area down, customers need to be ready to move. Averaging 0.9625 through the third quarter. On the flip side, if buyers return and trigger a bullish reversal considering the oversold position of the market, the initial resistance is seen at 1.0350. On further strength, the sentiment shifts to 1.0665.
The EUR/USD chart is prepared using TradingView
ADVERTISING BOXES FOR COMMERCERS
- Are you getting started? Download beginners’ guide for FX traders
- Want to know more about your business model? Take the Ask DailyFX and see
- Customer performance data provides economic information about the market sentiment. Get your free guide how to use this powerful marketing tool here.
— Written by Diego Colman, Market Strategist for DailyFX