Eurodollar rate today1/17/2024 ![]() The IEA has stated that competition for supplies of liquified natural gas (LNG) could also rise, if demand from China picks up. This could create an even bigger gap in European and global gas supplies than in 2022. Russian gas deliveries could be “considerably lower” in 2023 – or drop to zero. ![]() However, the IEA states that danger remains on the horizon. EUR/USD exchange rate has been up over 5%, since September, when Russia halted supplies of gas via its main pipeline to Europe. The International Energy Agency (IEA) reported in January 2023 that Europe made “impressive progress” in 2022 in reducing its reliance on Russian gas supplies and making sure it had enough gas in storage. “Both euro area core inflation and economic surprises have continued to strengthen, making it easier for the European Central Bank to maintain a hawkish tone.” The pair benefited from a general dollar weakness as inflationary pressures in the US continued to ease, while the ECB lifted interest rates by 50 basis points ( bps) as expected on 15 December, reiterating that more hikes will follow and outlined plans for quantitative tightening. ![]() The ECB’s interest rate decision on 27 October did little to support the euro, with the currency falling below parity up until 3 November.Ī weaker dollar and falling US Treasury yields drove EUR/USD back up to trade around the $1.06 level in mid-December. The pair peaked again at at $1.0317 on 12 September, before falling on 27th September to its lowest point of 2022 at at $0.95892. On 5 September, the pair dipped below the $0.99 level for the first time in two decades as Russia shut down its main gas pipeline to the EU, further destabilising the economic outlook in the eurozone. EUR/USD then went on a brief rally influenced by the ECB’s interest rate decision on 8 September. At the start of June the currency pair rose to $1.0790, before declining again in the same month to $1.04. The pair rose to a high of $1.1495 in early February before steadily dropping to $1.0380 on 13 May – a level last seen in January 2017. What lies ahead for EUR/USD, as it continues to rise further away from the parity level? How did EUR/USD trade in 2022? FX Publications Inc is a subsidiary of IG US Holdings, Inc (a company registered in Delaware under number 4456365).Here we look at the factors driving the currency pair and the euro to dollar forecast for 2023 and beyond. Registered Address: 251 Little Falls Drive, Wilmington, DE 19808. FXP is not responsible for any trading decisions taken by persons not intended to view this material. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. This information is made available for informational purposes only. ![]() Information presented by FXP should be construed as market commentary, merely observing economical, political and market conditions. residents or individuals domiciled in the U.S. Any and all information provided by FXP is not intended for use by U.S. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.įX Publications Inc., abbreviated herein as FXP, (d.b.a DailyFX) is no longer a registered Introducing Broker with the Commodity Futures Trading Commission and is no longer a Member of the National Futures Association in the U.S. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. ![]()
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