Today, Thursday (August 25), in the Asian session on Thursday (August 25), the EUR/USD bottomed out and rebounded. It is currently trading around 0.9985. As of 10:28 Beijing time, the EUR/USD price was 0.9988, an increase of 0.15 %, the euro fell below the 1.0 mark again after “struggling” above parity for more than a month. The lowest price of the euro against the US dollar in the previous trading day was 0.9908, and the closing price was 0.9966. The euro zone is now overwhelmed by high energy prices, and if it passively raises interest rates now, the economy will really suffer.
The “breathing” shock brought about by the Ukraine crisis has dealt another heavy blow to the Eurozone, which is in an energy predicament. Gazprom (Gazprom) said on the 19th that the “Beixi-1” natural gas pipeline will stop gas supply for 3 days starting on the 31st of this month for technical overhaul and preventive maintenance. The market is worried that Russia’s reduction of natural gas supplies to Europe may increase European inflation and further bring recessionary pressure to the euro zone. Soaring natural gas prices and further interest rate hikes by the European Central Bank will push the euro zone economy into a deep recession by the end of the year, JPMorgan said in a report on Tuesday.
EUR/USD technical analysis
Technically, EUR/USD’s doji candlestick at multi-year lows combined with an almost oversold RSI suggests that EUR/USD bears have run out of fuel.
Reminder: The Fed is expected to slow down the pace of interest rate hikes, and whether the dollar can maintain its upward trend will wait for Powell’s speech. The European energy crisis continues to weigh on the euro.