EUR/USD could dive below 0.95 for some months .

Economists at Rabobank retain a bullish USD view and maintain their forecast of a move lower to EUR/USD 0.95 on a one-month view. A move below this level, however, is not ruled out.

Severe risks to financial stability in Europe

“Europe could be facing ‘severe risks to financial stability’ according to a key regulator. This warning comes on the back of a slew of reports highlighting the impact of high energy costs on German industry. In our view, the EUR is not yet fully priced for the impact of Europe’s energy crisis.”

“We maintain our forecast of a move lower to EUR/USD 0.95 on a one-month view and expect the currency pair to remain at these levels, or lower, potentially for some months.” 

“In our view, further European Central Bank rate hikes will not be sufficient to prevent the EUR falling further against the mighty USD.” 

“Despite the emergence of fragilities in the global economic, further aggressive Fed rate hikes look set to be announced which is set to underpin the strength of the greenback.”

EUR/USD remains pressured below 0.9750 amid risk-aversion

EUR/USD remains under pressure below 0.9750, in the face of risk-aversion and broad US dollar rebound in early European hours. Investors remain cautious amid fresh Russia-Ukraine tensions, China’s growth worries and ahead of key US events. 


GBP/USD rebounds towards 1.1100 post-BOE announcement

GBP/USD is rebounding towards 1.1100 after BOE announced measures to support the market functioning. The US dollar holds the renewed upside amid risk-aversion triggered by Russia-Ukraine tensions. Thinner liquidity to extend due to the US holiday. 


Gold: Will bulls defend 21DMA support ahead of US inflation?

Gold price is at five-day lows below $1,700 as the US dollar cheers risk-aversion. Odds of a 75 bps Nov Fed rate hike after US NFP beat weigh on the bullion. XAU/USD looks to test 21DMA as RSI pierces back below the 50.00 level.

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