If our love (for USD) is tragedy, why is EUR/USD at parity?
No tragedy to see here, but we do have to pay closer attention to EUR/USD trading near the big 1.0000!
Before moving on, ICYMI, yesterday’s watchlist checked out EUR/JPY’s Double Bottom breakout after BOJ Gov. Kuroda confirmed the central bank’s plans to stick to its accommodative policies. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Europe on high alert as Russia temporarily halts gas flows via major pipeline
UK PM Johnson’s replacement to be announced on Sept 5
BOE Gov. Bailey: sharp inflation slowdown in 2023 still likely
Liquidators for crypto hedge fund Three Arrows Capital say they can’t find foundersFailure to implement Russian oil price cap could jack up prices to $140 per barrel – US Treasury official
BRC: UK retailers see biggest volume decline since pandemic as inflation bites
Hong Kong needs to allow free travel to retain financial hub status – report
Japan producer prices jump 9.2% from a year earlier in June vs. 9.3% uptick in May
Australia’s consumer sentiment slides further in July (-3.0%) amid inflation gloom
White House expects “highly elevated” but “out of date” June CPI
Asian stocks fall to two-year low; euro nears par with dollar on growth fears
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone and Germany’s ZEW economic sentiment at 9:00 am GMT
BOE Gov. Bailey to give a speech at 5:00 pm GMT
RBNZ’s policy decision at 2:00 am GMT
China’s trade balance scheduled during the Asian session
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: EUR/USD
EUR/USD 1-hour Forex Chart
If you didn’t catch our reference to Zedd’s Clarity, don’t worry!
All you need to know is that EUR/USD is a hair’s breadth away from the big 1.0000, which is a level that the pair hasn’t reached since December 2002.
That’s about the time we were cheering Aragorn at the Battle of Helm’s Deep in the second The Lord Of The Rings movie!An actual test of parity levels could inspire a bounce as tons of traders probably have their stops just under the psychological level.
Unless we see market-changing news updates, though, it’s likely that risk sentiment will continue to take center stage today.
Specifically, traders will continue to price in energy crisis concerns in the Eurozone and USD-friendly speculations that the Fed would turn even more hawkish next week.
How low can EUR/USD go? Watch how the pair reacts to 1.0000 and see if intraday bounces can provide opportunities to ride EUR’s downtrend.
If U.S. session traders adopt a risk-friendly trading environment, though, then gotta be ready to trade a wider bounce from 1.0000.
What do you think? Which way will EUR/USD go today?
