Breaking: EUR/USD dives to its lowest level since January 2017, below mid-1.0400s
|
- EUR/USD witnessed heavy selling on Thursday and dived to a fresh multi-year low.
- Aggressive Fed rate hike bets, the risk-off mood continued underpinning the USD.
- Concerns about the economic fallout from the Ukraine crisis weighed on the euro.
The EUR/USD pair broke down of its one-week-old trading range and slipped below mid-1.0400s, to its lowest level since January 2017 during the early part of the European session.
Despite signs that inflationary pressures in the world's biggest economy are peaking, the markets seem convinced that the Fed would tighten its monetary policy at a faster pace. This, in turn, continued acting as a tailwind for the US dollar and exerted downward pressure on the EUR/USD pair.
Apart from this, the prevalent risk-off environment - as depicted by an extended sell-off in the equity markets - further benefitted the greenback's safe-haven status. On the other hand, the shared currency was further weighed down by concerns that the European economy will suffer the most from the Ukraine crisis.
Key levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.