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EUR/USD Parity Within Touching Distance as USD Surges Ahead of NFP


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Jul 8, 2022 | DailyFX
Richard Snow, Analyst

EUR/USD ANALYSIS

  • Euro selling surges ahead of NFP data print later today
  • EUR/USD key technical levels analyzed
    EUR/USD Outlook: Euro US Dollar Exchange Rate Fluctuates Ahead Of Fed  Speeches

EURO SELLING PICKS UP AHEAD OF NFP DATA
The euro continues to sell-off into the weekend as the bearish trend shows little sign of abating. Euro woes continue to stack up with the latest concern being the scheduled maintenance of the Nord Stream 1 gas pipeline that facilitates the flow of natural gas from Russia to Germany and then into the EU. The pipeline is scheduled to undergo routine maintenance from the 11th to the 21st of July.

The pipeline has been identified as a major potential risk to the German economy and the EU by extension, should Russia stop transporting gas or send lower volumes than what is needed/requested.

At the same time, FOMC minutes of the June meeting confirmed the Fed’s determination to hike rates aggressively, even if it results in a period of lower economic growth. This is likely to support the dollar alongside its safe-haven appeal at a time when recession concerns pick up.

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EUR/USD SELLING HAS BEEN RELENTLESS

Since the Euro broke below multi-year support at 1.0340, selling has been relentless in the pair with little to no bouncebacks for traders to fade. Alongside this, close watchers of the pair may have noticed that Euro selling has picked up notably once London walks in, which to me suggests a more flow-driven move by big investors (not confirmed, more my speculation).

EUR/USD Chart: Hourly Timeframe

Bitcoin Bullish, Euro Selling Relentless, Trading NFP

Source: Refinitiv, Vertical Line = 08:00BST

Top Q3 Trade Idea – Euro May Break Parity

 

Jul 8, 2022 | DailyFX
Justin McQueen, Strategist

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