EURUSD hit another bottom – and it didn’t surprise anybody.
The major currency pair reached new lows – the last time the asset was moving there was in March 2017. The current quote for the instrument is 1.0541.
The USD rally doesn’t stop. The nearer the date of the Fed’s May meeting and the GDP release, the more dramatic the situation.
The Trade Balance report published by the US yesterday showed $-125.32B in March after being $ 106.35B the month before. Goods cover 75% of the total Trade Balance, so the deficit is not a good signal.
However, market players do not pay much attention to the statistics and continue choosing the USD. They tend to escape risks due to the Chinese lockdown and the overall geopolitical escalation. Moreover, investors are looking forward to the US Fed’s meeting that is scheduled for the next week. The American regulator announced a quick and aggressive rate hike to take control over inflation on several occasions, and it’s a good signal in favour of the “greenback”.
Later today, market players will turn their attention to the GDP Q1 2022 report, which is expected to show 1.1% q/q/ which is much worse than the quarter before, when the indicator gained 6.9% q/q. The better the numbers, the stronger the rally in the USD.