- The EUR/USD continued its bearish breakdown to long-term lows yesterday, trading as low as $1.1359 which is the lowest price seen for more than 1 year. It is likely that the price will fall further over the coming days, presenting an opportunity for trend traders.
- The RBA meeting minutes show the bank wishes to avoid a rate hike in 2022. The news sent the Australian dollar somewhat lower, which is logical as this could be expected to have at least a slightly dovish impact.
- The Turkish lira is continuing its long-term decline and falling to record low prices, continuing to advance after crossing 10 lira to the US dollar for the first time ever yesterday. We are likely to see a further advance in USD/TRY over the coming days, but be aware that trading this currency pair can be expensive and volatile.
- In the Forex market, the US dollar is the strongest major currency while the euro is the weakest. The market is currently moving in line with long-term trends.
- The price of wheat closed again yesterday at a new 4-year high. We may be seeing the start of a strong period for some agricultural commodities boosted by rising inflation.
- The cryptocurrency sector dipped quite firmly yesterday.
- President Biden and President Xi held a virtual summit, with markets not reacting clearly. President Biden seemed to hint the main takeaway was ensuring more open communications so the nations do not “veer” into conflict.
- Elon Musk yesterday exercised his TESLA options to sell $930 million worth of TESLA stock.
- Last week saw the third consecutive global weekly rise in new confirmed coronavirus cases after two months in which cases fell steadily.
- It is estimated that 52.1% of the world’s population has received at least one dose of a coronavirus vaccination.
- Total confirmed new coronavirus cases worldwide stand at over 254 million with an average case fatality rate of 2.01%.The rate of new coronavirus infections appears to now be increasing most quickly in Australia, Bolivia, Bosnia, Chile, Croatia, Cyprus, the Czech Republic, Denmark, the Dominican Republic, Germany, Greece, Hungary, Iceland, Italy, Jordan, Laos, Mauritius, Netherlands, New Zealand, Norway, Poland, Slovakia, Slovenia, Switzerland, Trinidad, and Vietnam.
Forex Today: EUR/USD Drops to 1-Year Low
Adam Lemon
The Reserve Bank of Australia’s meeting minutes reveal the Bank has no intention to raise its interest rate in 2022.