EUR/USD sinks to 19-month low

“Diligence is the mother of good luck.” — Benjamin Franklin

 

 

 

HEADLINES

 

 

 

• Dollar jumps as markets brace for larger, faster rate hikes
• EUR/USD unable to recover, prints fresh low at 1.1130
• Gold spirals down as hawkish Fed boosts U.S. dollar
• Oil falls from seven-year high as Russia tensions offset Fed tightening
• S&P 500 ends lower after another wild ride
• Apple sales and profit top estimates as iPhone dodges supply chain hits

 

 

FOREX

 

 

 

Dollar jumps as markets brace for larger, faster rate hikes

 

 

The dollar soared to highs last seen in July 2020 against other major currencies on Thursday, a day after the Federal Reserve said it could deliver faster and larger interest rate hikes in the months ahead.

With the Fed flagging that it was ready to start lifting rates in March to contain surging inflation, money markets moved to price in as many as five quarter-point increases by year-end.

 

 

EUR/USD unable to recover, prints fresh low at 1.1130

 

 

After a brief recovery, the EUR/USD dropped to 1.1130, hitting a fresh multi-month low. It then rebounded again, finding resistance around 1.1160. The pair remains under pressure amid a broad-based strong US Dollar.

 

 

 

COMMODITIES

 

 

 

Gold spirals down as hawkish Fed boosts U.S. dollar

 

 

Gold prices slid over 1% to more than a two-week low on Thursday, as the dollar rallied after robust U.S. economic data strengthened the case for an interest rate hike by the Federal Reserve in March. he drop in gold prices is a continuation of Wednesday's selloff as markets further digest Fed Chair Jerome Powell's comments on raising rates, said Philip Streible, chief market strategist at Blue Line Futures in Chicago.

 

 

Oil falls from seven-year high as Russia tensions offset Fed tightening

 

 

Oil prices fell on Thursday after Brent crude hit a seven-year high above $90 a barrel, as the market balanced concerns about tight worldwide supply with expectations the U.S. Federal Reserve will soon tighten monetary policy.

Global benchmark Brent fell 62 cents to settle at $89.34 a barrel, while U.S. crude closed 74 cents lower at $86.61 a barrel in a volatile session with both contracts see-sawing between positive and negative territory.

 

 

 

STOCKS

 

 

 

S&P 500 ends lower after another wild ride

 

 

Wall Street gyrated wildly on Thursday, the S&P 500 once again narrowly avoiding correction confirmation at the end of a session marked by a rally, selloff and recovery as investors juggled positive economic news with mixed corporate earnings, geopolitical unrest and the prospect of a more hawkish Federal Reserve.

All three major U.S. stock indexes ended lower, having been whipsawed by uncertainty in recent days, marked by wide fluctuations and heightened volatility.

 

 

Apple sales and profit top estimates as iPhone dodges supply chain hits

 

 

Apple Inc (AAPL.O) on Thursday reported record sales in the holiday quarter, beating estimates as it benefited from high iPhone demand in China and withstanding supply chain constraints and Omicron variant disruptions.

Apple shares rose 1.75% in after-hours trading and are down 10% this year, in line with the broader market, as investors reconsider stocks that have soared during the pandemic and shift funds toward safer assets.

 

 

 

CHART

 

 

 

British pound / US dollar – Daily Candlesticks

Source: GKFX Prime Metatrader 4

GBP/USD has fallen sharply into previous resistance at 1.337, which could offer some temporary relief, while further support lies down at 1.317. - Prepared by Trading Writers*

 

 

 

CALENDAR

 

 

 

*Times in GMT

Source: FX Street Economic Calendar

SOURCE:

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/business/futures-little-changed-following-feds-hawkish-stance-2022-01-27/
https://www.reuters.com/technology/apple-sales-profit-top-estimates-iphone-dodges-supply-chain-hits-2022-01-27/
https://www.reuters.com/markets/europe/dollar-finds-buyers-fed-flags-hikes-2022-01-27/
https://www.reuters.com/business/gold-slips-hawkish-fed-lifts-us-dollar-yields-2022-01-27/
https://www.reuters.com/business/energy/oil-falls-seven-year-high-russia-tensions-offset-fed-tightening-2022-01-27/
https://www.fxstreet.com/news/eur-usd-unable-to-recover-prints-fresh-low-at-11130-202201271625