Home Daily Commentaries EURUSD continues to fall

EURUSD continues to fall

Wednesday 6 July, 2022

Daily Currency Update

Demand for the US dollar continued to surge on Wednesday as investor concerns intensified around an economic downturn in Europe and growing expectations that the global economy could tip into recession. This week, the US dollar has hit fresh 20-year highs due to safe-haven demand as a 'flight to safety' play out in financial markets, with equities and risk assets falling. The US dollar reached a level not seen in nearly two decades against the euro, which is experiencing additional downward pressure from a surge in gas prices and strikes on oil and gas fields in Norway. EURUSD was sitting at 1.0184 at the time of writing. Data showed that US business activity in the service expanded at a slightly faster pace than anticipated in June. The US Dollar Index was up 0.45% trading at 107.02 at the time of writing.  

Key Movers

GBPUSD continued to trade under 1.20 on Wednesday following news of multiple key UK minister resignations on Tuesday, with multiple calls for UK Prime Minister Boris Johnson to resign. UK Services PMI data came in better than expected on Tuesday. The deputy governor of the Bank of England also expressed his view on surging prices, stating the current inflation we are seeing is primarily coming from abroad and that the UK is still targeting a figure of 2% for the future. However, all eyes appear to be on political sentiment at the moment over data-driven movements.

Expected Ranges

  • EUR/USD: 1.0163 - 1.0271 ▼
  • GBP/USD: 1.1881 - 1.1984 ▼
  • AUD/USD: 0.6762 - 0.6823 ▼
  • USD/CAD: 1.3014 - 1.3076 ▲