USD strength continues: Gold (XAU/USD) back to $1800? EUR/USD going to parity? [Video]
|As we can see, USD is continuing its march higher and investors will be watching Jerome Powell Tuesday evening.
The markets expect the US Federal Reserve to hike Interest Rates by 0.25% in June but if Powell hints at something higher, we could see USD go even higher.
Also tomorrow, we will see the European Union GDP figures and later a speech by Christine Lagarde.
Here as well, investors will be waiting for news on Interest Rate rises to see what the ECB can do to slow down inflation and what, if anything, European industries can do about the potential ban on Russian oil.
We looked at the EURUSD weekly chart last week and we see price action is lower again, trying to break support from years ago.
If we look at the monthly chart we see the level of “parity” where EURUSD is $1.00.
This happened 20 years ago and many analysts and banks see this coming.
The strength of USD is affecting Gold as we see price action continuing to fall on XAUUSD.
We have a few levels of support below, all in the high and low $1700s.
We see Natural Gas moving higher as European countries are trying to work out how to pay for it as Russia is demanding Rubles, against the current sanctions.
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