Euro lowest since 2017

“The best investment is in the tools of one’s own trade.” – Benjamin Franklin 

 

 

HEADLINES

 

 

• Euro peers over the cliff at dollar parity as recession looms 
• Gold prices dip as dollar rises to pandemic high
• Oil prices dip as dollar soars, U.S. crude stocks rise modestly
• US, European shares rise as earnings mixed; euro dives to lowest since 2017
• Platinum to plunge towards $730 on a weekly close below $905/897 – Credit Suisse
• GBPUSD Near Term: Downside favored

 

 

FOREX

 

 

Euro peers over the cliff at dollar parity as recession looms 

 

The euro's drop to a five-year low is rekindling the possibility the currency will reach parity versus the dollar for the first time in two decades, as fears of a euro zone recession encourage investors to pile on the bearish bets. 

As the single currency plumbed a low of $1.0514 against the dollar, bringing April losses to 4.5% , some high-frequency financial and economic indicators are flashing red.

The euro has moved steadily lower since peaking at $1.6 in 2008, deriving little benefit from expectations the European Central Bank may raise interest rates this year by 80 basis points.

 

 

COMMODITIES

 

 

Gold prices dip as dollar rises to pandemic high 

 

Gold prices fell on Wednesday as the dollar consolidated at its highest level in more than two years and pressured demand for greenback-priced bullion. 

Spot gold was down 0.8% at $1,890.77 per ounce as of 1:55 p.m. ET.

U.S. gold futures slid 0.7% to $1,891.7.

Headlines from Russia provided some support to gold on Tuesday as investors sought a safe haven, but the Ukraine crisis has not been as much of a bullish story recently as it was a few weeks ago, and is unlikely to last through the week, Simpson said. 

 

Oil prices dip as dollar soars, U.S. crude stocks rise modestly 

 

Oil prices dipped on Wednesday as a soaring dollar made barrels more expensive and as coronavirus outbreaks cloud the economic outlook in China, the world’s biggest importer of crude oil. 

Separately, U.S. government data showed crude stockpiles rose modestly last week as fuel inventories declined, signalling ongoing tightness in the world’s largest oil producer.

 

 

STOCKS

 

 

US, European shares rise as earnings mixed; euro dives to lowest since 2017 

 

Major U.S. and European equity indexes rose in choppy trade on Wednesday, and the euro dropped to its weakest since 2017 after Russia halted gas supplies to Bulgaria and Poland and investors worried more about the region's economy. 

Wall Street rose, rebounding the day after a rout drove the Nasdaq to its lowest close since December 2020.

Strong earnings reports boosted U.S. stocks, with Microsoft Corp (MSFT.O) jumping over 6% and Visa Inc (V.N) surging over 8%.

 

 

ANALYSIS

 

 

Platinum to plunge towards $730 on a weekly close below $905/897 – Credit Suisse 

 

“A weekly close below $905/897 would be seen to mark a significant break lower with just initial support then seen at the 61.8% retracement of the 2020/2021 bull trend at $860, then the lows from late 2020 at $840828. Big picture though, we would see scope for a fall to $730.”

“Above $1,026 is needed to ease the immediate downside bias and reassert the broader sideways range again.” 

 

 

CHART

 

 

GBPUSD Near Term: Downside favored

Technical View: Short position below 1.259. Target 1.248. Conversely, break above 1.259, to open 1.263.

Comments: The pair breaks below support.

Source: Trading Central 

 

 

CALENDAR

 

 

*Times in GMT

 

Source: FX Street Economic Calendar

SOURCES:

https://www.reuters.com/business/finance/euro-peers-over-cliff-dollar-parity-recession-looms-2022-04-27/ 
https://www.cnbc.com/2022/04/27/gold-markets-dollar.html 
https://www.cnbc.com/2022/04/27/oil-markets-russia-china-economy.html 
https://www.reuters.com/business/global-markets-wrapup-1-2022-04-27/ 
https://www.fxstreet.com/news/platinum-to-plunge-towards-730-on-a-weekly-close-below-905-897-credit-suisse-202204271334