US dollar continues upward surge
Daily Currency UpdateThe USD continued its upward surge and marched towards a 5-year high on Wednesday, buoyed by growing concerns over the global economic outlook and expectations for even more aggressive monetary tightening from the Federal Reserve.
Renewed concerns over an economic slowdown in China due to COVID-19 lockdowns have fueled demand for the safe-haven US dollar. The US Dollar Index was up 0.73% at around 103.05 at the time of writing.
The price of oil climbed after Russia cut natural gas supplies to Poland and Bulgaria, which isn't good news for Europe's energy crisis. Russia has decided to cease supply in response to each country’s decision not to pay for its gas in rubles, which has mounted severe pressure on the euro.
Like the Bank of England, policymakers at the European Central Bank have a difficult path regarding controlling rising prices in the face of slowing economic growth. If more European countries are threatened with gas cut-offs then the shared currency could be heading towards parity versus the super-strong US dollar.
EURUSD was down 0.85%, trading around 1.0547 at the time of writing.
- EUR/USD: 1.0525 - 1.0663 ▼
- GBP/USD: 1.2509 - 1.2618 ▼
- AUD/USD: 0.7104 - 0.7191 ▲
- USD/CAD: 1.2778 - 1.2851 ▲