Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Slips, Euro Gains For Now; Growth Outlook Weakens

Forex Mar 08, 2022 02:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse

Investing.com - The U.S. dollar edged lower Tuesday while the euro traded marginally above the previous session’s 22-month low as the war in Ukraine threatens the European growth outlook. 

At 2:55 AM ET (0755 GMT), US Dollar Index, which tracks the greenback against a basket of six other currencies, traded just lower at 99.275, retaining its strength as a safe haven as the Russia-Ukraine conflict intensifies.

EUR/USD rose 0.1% to 1.0863, attempting something of a recovery after almost a week of selling, but remains near to Monday's low of 1.0806, suggesting any support is pretty half-hearted. The euro is down 4% against the dollar since Russia launched its invasion of Ukraine.

“How low could EUR/USD go? Support levels seem to be around the 1.0760/70 area and then the March 2020 lows of 1.0640 - but probably at times like these, big figures of e.g. 1.0500 become more relevant,” said analysts at ING, in a note.

And it’s not only the dollar that the single currency has seen hefty selling against, as it briefly traded at parity with the Swiss franc on Monday for the first time in seven years.

This prompted the Swiss National Bank to state that it is ready to intervene and address the rapidly strengthening franc.

The European Central Bank (ECB) meets on Thursday, but the single currency is unlikely to get support then as the likelihood of slowing growth in the region on the back of the Ukraine conflict and rising commodity prices could prompt the policymakers to delay rate hikes until late in the year.

The ECB is also unlikely to intervene by itself in support of the euro.

“Were things to get out of hand, we would think coordinated G5 intervention to support EUR/USD would be more likely than ECB own account intervention,” added ING. “But that may not occur until closer to parity.”  

The Federal Reserve meets next week, and Chairman Jerome Powell last week backed a quarter-point rate increase while telling Congress he would move more aggressively later if inflation didn’t abate.

Elsewhere, USD/JPY traded 0.1% higher at 115.43, GBP/USD gained 0.1% to 1.3108, near a 16-month low, while AUD/USD dropped 0.4% to 0.7285, handing back some of its recent gains.

USD/RUB was indicated 4.1% lower at 130.00, with the ruble benefiting from the lack of solidity between Western governments on a move to ban Russia’s oil imports.

USD/PLN rose 0.1% to 4.5865 ahead of the latest policy-setting meeting of Poland’s central bank, which is expected to result in interest rates rising 50 basis points to 3.25%.

This move will help to support the zloty, which plunged to a record low against the euro as the fallout from Russia’s war on Ukraine spreads.

Dollar Slips, Euro Gains For Now; Growth Outlook Weakens
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Tre Hsi
Tre Hsi Mar 08, 2022 9:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"USD/RUB was indicated 4.1% lower at 130.00, with the ruble benefiting from the lack of solidity between Western governments on a move to ban Russia’s oil imports."  -- who are still buying Russian Rubles at this point???
Muhammad Irfan M A
Muhammad Irfan M A Mar 08, 2022 6:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email