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Important Notice - Fraud awareness
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Bears push EURUSD into 10-year record low

EUR/USD created a historical record yesterday, Monday 25th April 2022, with the price falling to its lowest point ever in ten years. The bears have seemingly had their most lavish feast on this pair during the Asian session pushing the price down as low as $1.06952. At this point alone, the bulls resurfaced to defend the denigrated pair.

The increasing dollar strength due to rapid growth in the US economy, imminent interest hikes, and increased employment have greatly affected the Euro.

Similarly, the Euro has been severely affected by the acceleration of the Russian-Ukraine war that had crippled the flow of exchange in energy products, especially oil. Russia has mandated that EU countries pay for oil purchases using the Russian Ruble or risk a drastic reduction in supplied volumes. Many EU countries trying to abide by the agreement bidding have had severe difficulties acquiring oil from Russia ever since.

 

A third and more important factor that similarly affected the Euro currency yesterday was the outcome of the just-concluded French presidential elections. The incumbent president Emmanuel Macron secured his presidency by fending off campaign rival far-right opposition candidate Marine Le Pen at Sunday's runoff vote.

Macron gathered the support of over 58.55% of Sunday's vote and hence emerged as the first re-elected French leader in 20 years.

Unsurprisingly, signs of uncertainty were felt in the market regarding the outcome of this election during yesterday's Asian session, most seemingly due to anticipation before the news release.


Currently, EURUSD is absorbing the loss and recovering from the severe drawdown. Nonetheless, a substantial buying opportunity for investors is now available to those who always wished to buy at the lowest support level. The market seeks a massive recovery for EURUSD at this point.

Last Updated: 27/04/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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