EURUSD bypasses risks again. Overview for 24.03.2022

EURUSD is back to falling; investors are selling due to increased risks.

The major currency pair found itself under pressure on Thursday. The current quote for the instrument is 1.0984.

In the last 24 hours, risk aversion returned to global financial markets, including the currency one. There is an opinion that EURUSD might remain under bearish pressure today: geopolitical background is too eventful. On Thursday, NATO is going to have a summit featuring the US and the European Union. The currency market is highly likely to be very sensitive to any information that may come from there. 

In the afternoon, the Euro Area will release preliminary reports on the Markit Manufacturing/Services PMIs. Similar reports will be published by Germany and France. If the statistics turn out to be weak, one might conclude that the current geopolitical situation has a strong influence on the European business sector. Hence, additional pressure on the Euro. 

The US will also be quite busy in the economic calendar. The country is scheduled to publish a weekly report on the Initial Jobless Claims, as well as a report on the Durable Goods Orders for February. The latter indicator is extremely volatile, so one needs to take a closer look at its components. 

At the moment, the “greenback” has huge support from the global risk aversion – the American currency is stable thanks to a rather aggressive sentiment and comments from the FOMC members and other policymakers. Yesterday, the head of the Federal Reserve Bank of St. Louis spoke and said that the regulator had to start reducing its portfolio as soon as possible. The head of the Federal Reserve Bank of Cleveland said she believed that the FOMC should raise the rate by 50 basis points to fight inflation.