You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

EUR/USD nears parity amid Eurozone recession fears

currency-newsEUR/USD nears parity amid Eurozone recession fears
The EUR/USD exchange rate plummeted to a new 20-year low on Tuesday, amid heighted fears of a Eurozone recession.

Meanwhile, the pound is trading without a strong directional bias this morning, with GBP/EUR stable at €1.1669 and GBP/USD buoyed at $1.1972. GBP/CAD is rangebound at C$1.5582, while GBP/AUD and GBP/NZD hold steady at AU$1.7571 and NZ$1.9366, respectively.

Looking ahead, will some hawkish FOMC minutes help to propel the US dollar even higher today?

What’s been happening?

The US dollar was catapulted higher yesterday, with investors flocking to the safe-haven currency amid fresh recession fears.

Aiding the ‘greenback’s ascent was the publication of the latest US factory order figures as order growth accelerated at a much faster than expected pace in May.

The euro, meanwhile, plummeted on Tuesday amid concerns over European gas supplies.

EUR investors fear an energy shortage could severely cripple economic activity and plunge the Eurozone into a recession.

The pound also slumped during yesterday’s session as a risk-off mood prevailed. Applying further pressure to Sterling was also the publication of the Bank of England’s (BoE) Financial Stability Report, which warned about significant headwinds facing the UK economy.

What’s coming up?

Kicking off today’s session was the publication of Germany’s latest factory order figures. A surprise uptick in order growth in May could offer some support to the euro today.

GBP investors will be focused on UK political developments today following the resignation of two senior cabinet members yesterday. Questions over Boris Johnson’s future as Prime Minister could infuse volatility into the pound.

Meanwhile the spotlight for USD investors will be on the publication of the minutes from the Federal Reserve’s June policy meeting. If these reinforce expectations for more aggressive rate hikes from the bank this could propel the US dollar higher.

In the meantime, we will also see the publication of the ISM non-manufacturing PMI, which could limit the US dollar’s upside potential if it reports US service sector growth slowed last month.
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.