Economy Forex News

EUR/USD falls to new 2021 lows at 1.1524

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  • EUR/USD declines for the second day in a row, thanks to the strength of the U.S. dollar.
  • The US dollar index trades at 1.5-year highs above 94.50, weighing on EUR/USD.
  • Market sentiment is bearish, attributed to inflationary pressures and slower growth.
  • Fed’s Bostic and Clarida support the start of bond tapering in November.

EUR/USD declines during the U.S. session, losing 0.23%, trading at 1.1526 at the time of writing. The single currency trades near 2021 lows.

EUR/USD

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U.S. stock indices fell between 0.15% and 0.34% as market sentiment remains risk averse. However, safe haven currencies such as the Japanese yen and Swiss franc are losing ground against most G8 currencies. Meanwhile, the U.S. dollar index, which tracks the greenback’s performance against a basket of six rivals, is up 0.18%, trading at 94.54, hitting a new 1.5-year high.

Consumer confidence, high energy prices, and supply shortages are weighing on investors, as well as inflationary pressures.

German ZEW economic confidence was worse than expected

On the macroeconomic front, Germany presented the Economic Sentiment and Current Situation ZEW Survey for October. The economic sentiment reading fell to 22.3, below the expected 24, while the current situation reading dipped to 21.6, below the expected 29.5, and behind September’s 31.9.

JOLTS job openings for August decreased to 10.439 million, lower than the estimate of 10.925 million.

Fed’s Bostic and Clarida support start of bond tapering for November meeting

Fed members made statements during the meeting. The Atlanta Fed’s president said the slowdown in the U.S. labor market should not impede the Fed’s tapering schedule. He added, “it would be comfortable to begin tapering the asset purchase program in November.”

Moreover, Fed Vice Chairman Richard Clarida said the bar for tapering has been virtually met as far as the labor market is concerned. Furthermore, he stated, “If the recovery remains on track, a gradual tapering of asset purchases will soon be justified.”

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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