Recession fears see Euro plunging to a 20-year low
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Without an official announcement, the market has reacted as if the recession is here, turning to the greenback as a safe haven option. The Euro and British Pound took the biggest hit, EUR/USD plunged to a 20-year low of 1.0266, losing off 150 pips in the process. GBP/USD also declined more than 1.3% to 1.1957, as the resignations of two major cabinet members further destabilized the Johnson administration.
The Reserve Bank of Australia increased interest rate by 50 basis points to 1.35%, aligning with its forecasts, while preparing more rate hikes to control inflation. AUD/USD had dropped modestly to 0.6802. On Thursday, the Australian Bureau of Statistics will provide the trade balance figures for May.
The US dollar received a huge boost, USD/CAD spiked to 1.3036 with a high of 1.3075. A strong greenback dissuaded investors from buying the yellow metal, gold futures dropped to the lowest level in over six months at 1,763.9 an ounce.
Recession fears also lowered the anticipated demand for crude oil, WTI crude futures retreated below the $100 level, to a closing price of $99.5 a barrel.
More information on Mitrade website.
GBP/USD 🔽
AUD/USD 🔽
USD/CAD 🔼
XAU 🔽
WTI 🔽
Without an official announcement, the market has reacted as if the recession is here, turning to the greenback as a safe haven option. The Euro and British Pound took the biggest hit, EUR/USD plunged to a 20-year low of 1.0266, losing off 150 pips in the process. GBP/USD also declined more than 1.3% to 1.1957, as the resignations of two major cabinet members further destabilized the Johnson administration.
The Reserve Bank of Australia increased interest rate by 50 basis points to 1.35%, aligning with its forecasts, while preparing more rate hikes to control inflation. AUD/USD had dropped modestly to 0.6802. On Thursday, the Australian Bureau of Statistics will provide the trade balance figures for May.
The US dollar received a huge boost, USD/CAD spiked to 1.3036 with a high of 1.3075. A strong greenback dissuaded investors from buying the yellow metal, gold futures dropped to the lowest level in over six months at 1,763.9 an ounce.
Recession fears also lowered the anticipated demand for crude oil, WTI crude futures retreated below the $100 level, to a closing price of $99.5 a barrel.
More information on Mitrade website.